Trading Plan: 29 September 2022
Nasdaq (+2.05%) came back from the lows and was able to close above yesterday’s close. This is might be bullish and we can see the price going to the 11500 area. Yesterday's move had a below-average volume, I still remain cautious. Watching yesterday's high and the support area for now.
SP-500 (+1.97%) made a similar move and cleared yesterday’s high. Hard to say if it is a reversal or just some short coverings at the support. In order to talk about a real reversal, we need to see the big money entering the market and the price past the recent highs. Watching yesterday’s high / EMA 21 and the support area.
In the news
‘We are in deep trouble: Billionaire investor Druckenmiller believes Fed’s tightening will push the economy into recession in 2023.
Amazon’s Fall Device Event: Wi-Fi-Boosting Echo Speakers, a Kindle for Note-Taking.
Tata Motors launches a $10,000 electric car in India to further its lead.
Bank of England intervenes in the bond market after a historic sell-off.
U.S. goods trade deficit shrinks on weak exports; Q3 growth estimates raised.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Utilities.
Best weekly sector: Healthcare, then Communication Services. Worst sector: Real Estate.
Best monthly sector: Healthcare, then Consumer Defensive. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 29.59
VIX (neutral under 20): 30.18
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.09
CNN Fear & Greed: 19 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 15.69%
Stocks above SMA200 (neutral above 30): 19.55%
Number of stocks that increased yesterday by more than 4%: 827
Number of stocks that decreased yesterday by more than 4%: 53
McClellan Oscillator (neutral between -100 and 100): -103.84
Earnings Reports
Bed Bath & Beyond BBBY 0.00%↑ will report its fiscal second-quarter earnings ahead of Thursday's open. For Bed Bath & Beyond's fiscal Q2, analysts are targeting a per-share loss of $1.80 compared to a year-ago profit of 4 cents per share. Revenue is projected to fall 26.8% on a year-over-year (YoY) basis to $1.5 billion.
Micron Technology MU 0.00%↑ will unveil its fiscal fourth-quarter earnings after today's close. Consensus estimates are for the memory chipmaker to report earnings of $1.30 per share (-46.3% YoY) and revenue of $6.7 billion (-19.1% YoY).
Nike NKE 0.00%↑ earnings will be released after today's close as well. For the athletic apparel retailer's fiscal first quarter, analysts' average estimates are for earnings per share (EPS) of 93 cents, down 19.8% from the year-ago period. Revenue is forecast to arrive at $12.3 billion (+0.8% YoY).
Other noteworthy earnings reports for today:
What to trade today
Most stocks reversed yesterday after the extreme oversold condition. Even if I liked the strong price action in some TMLs when the pressure of the market was off, I think the big money still stays aside judging by volumes.
I do not plan to trade today.
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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