Trading Plan: 3 April 2023
Nasdaq (+1.74%) made a very positive move with solid volumes and is now close to a recent resistance. We might see a consolidation here before going farther up, probably a handle in progress (see also the McClellan Oscillator in the Overbought territory). Watching the EMA21 as well as a potential downside.
SP-500 (+1.44%) made also a good advance above the downtrend line and all the key averages. The price will be soon in a congested area so some sellers are most likely to appear. Watching the resistance vs. key averages.
In the news
Oil prices surge 8% after OPEC’s surprise output cuts; analysts warn of $100 per barrel.
Tesla TSLA 0.00%↑ reports 422,875 deliveries for the first quarter of 2023.
McDonald's MCD 0.00%↑ temporarily shuts US offices, prepares layoff notices.
ChatGPT banned in Italy over privacy concerns.
Sectors
Best yesterday sector: Consumer Cyclical, then Real Estate. Worst sector: Energy.
Best weekly sector: Energy, then Consumer Cyclical. Worst sector: Communication Services.
Best monthly sector: Technology, then Communication Services. Worst sector: Financial.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 65.15. A strong continuation from last week, the number is very close to the neutral interval which is a positive sign.
VIX (neutral under 20): 18.70 (decreasing - very good to see the number under 20)
Put / Call Ratio (neutral between 0.7 and 1): 1.04. Since this is a contrarian indicator, we might expect a reversal in the market in the short term.
CNN Fear & Greed: 49 (Neutral). The neutral area is a good sign.
Breadth
Stocks above SMA40 (neutral between 30 and 80): 35.57%. The new uptrend might signal good opportunities.
Stocks above SMA200 (neutral above 30): 43.56%. The same idea, the advance is constructive.
The cumulative 4-Week Hi-Low & Volume Index reversed and we can notice new highs and uptrend volumes. This is constructive of course.
Nasdaq Advance / Decline Line had also good momentum and a new uptrend might be in place. McClellan Summation Index passed its SMA10 which is a positive sign.
Number of stocks that increased yesterday by more than 4%: 268
Number of stocks that decreased yesterday by more than 4%: 118
McClellan Oscillator (neutral between -100 and 100): -39.16. The indicator is in the Overbought area - we might see a consolidation or a pullback in the market.
Earnings Reports
Noteworthy earnings reports for today
No noteworthy earnings reports for today.
The most anticipated earnings releases for this week
These are the stocks to watch for a possible earnings gap.
Economic Calendar
What to trade today
The market had a good momentum last week and based on the breadth indicators, we might see an uptrend continuation. Of course, nothing is guaranteed, but the chances are to see more advances.
When the market is favorable, patience is rewarded. All six watched stocks that were at a low-risk possible entry last Monday triggered during the week and went up.
For this week, I will watch:
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.
PS: If you have time, here is a fun article about trading. Enjoy! :)