Trading Plan: 29 August 2022
Nasdaq (-3.94%) made a red wide range bar to the downside and lost its EMA21 after Powell's speech (he said nothing new; he just used stronger and more direct language than in the past). Probably, it was just a catalyst after the formed bear flag at the SMA200 area rejection. Just observing the market and looking for signs of support at recent lows.
SP-500 (-2.95%) had a red wide bar and closed under its EMA21 as well. The damage is done, looking for support now before expecting a reversal. Caution mode.
In the news
Wall Street fear gauge hits a seven-week high. Stock futures point to further losses on rate concerns.
Chinese tech giants had their worst quarterly growth on record, thanks to Beijing’s zero-Covid policy.
NASA’s Artemis Launch Gives Boeing Chance to Restore Its Space Credibility.
Europe's gas crisis could last several winters, Shell CEO says.
Bitcoin risks worst August since 2015 as ‘hodlers’ brace for ‘September’.
Sectors
Best yesterday sector: Energy, then Utilities. Worst sector: Technology.
Best weekly sector: Energy, then Basic Materials. Worst sector: Technology.
Best monthly sector: Energy, then Basic Materials. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 54.86
VIX (neutral under 20): 25.56
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.10
CNN Fear & Greed: 44 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 54.11%
Stocks above SMA200 (neutral above 30): 30.93%
Number of stocks that increased yesterday by more than 4%: 44
Number of stocks that decreased yesterday by more than 4%: 933
McClellan Oscillator (neutral between -100 and 100): -84.32
Earnings Reports
Noteworthy earnings reports for today:
And the most anticipated earnings releases scheduled for the week:
What to trade today
Every sector closed red. There is no time to swing trade, all longs patterns are mostly broken while the shorts are being made. So, it is better to “go fishing” as Livermore said once. I will listen to some music instead, “Kokomo” by Beach Boys, “Can’t Touch This” by M.C. Hammer or “Patience” by Guns N’Roses and follow Darvas’ advice:
Top 20 Industry Groups:
I will watch as I liked their RS:
Rhythm Pharmaceuticals RYTM 0.00%↑ is consolidating in time waiting for its EMA21 to catch up. Good accumulation during the advance and low volumes when consolidating. Good RS on Friday. The market is not optimal, do not forget.
Teekay Tankers TNK 0.00%↑ has a good consolidation and it might offer a good surprise. Always put the risk first.
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.
In order to learn more about trading, you may want to read: