Trading Plan: 29 April 2022
Nasdaq (+3.06%) was bouncing from support with important volume. It seems the market already discounted the inflation / QE stop and we might see a rally back to EMA21 / SMA50. If this happens and the reaction to earnings will be positive, we can see higher prices. But watch for support (12500 area) as well.
SP-500 (+2.74%) made the same reversal move. Watching the support and main averages with a special focus on SMA200 here. I liked the volumes, but I would prefer to see more for a real uptrend confirmation. Do not rush. Progressive exposure is the key.
In the news
Elon Musk sold around $4 billion worth of Tesla shares as he moved to buy Twitter.
Apple authorized $90 billion in share buybacks.
Top autos CEO warns of battery supply scarcity as EV competition heats up.
Snap launches a $230 flying camera called Pixy.
Biden requests $33 billion for the Ukraine war.
Sectors
Best yesterday sector: Technology, then Communication Services. Worst sector: Healthcare.
Best weekly sector: Technology, then Consumer Defensive. Worst sector: Basic Materials.
Best monthly sector: Consumer Defensive, then Energy. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 46.25
VIX (neutral under 20): 29.99
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.16
CNN Fear & Greed: 38 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 37.11%
Stocks above SMA200 (neutral above 30): 32.59%
Number of stocks that increased yesterday by more than 4%: 455
Number of stocks that decreased yesterday by more than 4%: 195
McClellan Oscillator (neutral between -100 and 100): -41.40
Earnings Reports
Amazon shares fall on the bleak forecast and the slowest growth since the dot-com bust. Apple shares dip after the company warns of a possible $8 billion hit from supply constraints.
Noteworthy earnings reports for today:
What to trade today
After yesterday's reversal, some stocks on the short watchlist are not anymore in a pattern (the risk is not low anymore).
Grid Dynamics ($GDYN) is consolidating patiently in a channel. Volumes are low and ATR is declining. Good for both long or short, Stop Loss at 5%.
If the market is strong, GitLab ($GTLB) might be a possibility for a long position. Stop Loss at SMA50 / EMA21.
Do your due diligence if or when placing a trade. All ideas stated here are my own and do not represent trading or investment advice.
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