Trading Plan: 29 June 2022
Nasdaq (-2.98%) reversed the trend again and closed in red with above-average volumes. It wasn’t able to pass over Monday’s high and lost the EMA21. Now, there are more chances to see it testing the recent lows.
SP-500 (-2.01%) tried Monday’s high, but the move seems it was just a mean reversion. The volumes were low here, we might see consolidation in this area, but it is very likely to see the price going lower.
In the news
Tesla is cutting about 200 Autopilot jobs and closing its office in San Mateo, California.
Airbnb makes its party ban permanent.
A startup that sucks carbon dioxide from the air is building a big plant in Iceland.
US May wholesale inventories +2.0% vs +2.1% prior.
Volkswagen and Siemens invest $450M into Electrify America in EV charging push.
Sectors
Best yesterday sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Best weekly sector: Utilities, then Healthcare. Worst sector: Basic Materials.
Best monthly sector: Real Estate, then Communication Services. Worst sector: Basic Materials.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 19.86
VIX (neutral under 20): 28.36
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.99
CNN Fear & Greed: 26 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 25.75%
Stocks above SMA200 (neutral above 30): 18.84%
Number of stocks that increased yesterday by more than 4%: 133
Number of stocks that decreased yesterday by more than 4%: 385
McClellan Oscillator (neutral between -100 and 100): 17.63
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
There were a lot of red reversals yesterday.
This is not at all a time to be aggressive, the bear market reminds us that the breakouts’ chances, even from a pattern, are very slim.
Cash is (again) king. No plan to trade today.
PS: My next Trading Plan will be published on Tuesday.
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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