Trading Plan: 3 August 2022
Nasdaq (-0.16%) tried to move higher but closed flat. It seems the price is correcting in time, waiting for the main averages to come instead of going to them. This is might be constructive. Watching some volumes coming in for breaking the resistance while keeping an eye on the lows.
SP-500 (-0.67%) made a small pullback in the 4080 area, the previous day’s lows. A consolidation here might be constructive, but also a visit to its main averages (EMA21/SMA50) is normal. Watching the two levels marked on the chart.
In the news
U.S. House Speaker Nancy Pelosi meets Taiwan’s president despite China’s warnings.
Apple chipmaker TSMC warns Taiwan-China war would make everybody losers.
Gap between monkeypox vaccine demand, supply dire in hotspot cities.
AMTD Digital Inc HKD 0.00%↑ +2000% in just a few days.
Sectors
Best yesterday sector: Technology, then Communication Services. Worst sector: Financial.
Best weekly sector: Technology, then Consumer Cyclical. Worst sector: Healthcare.
Best monthly sector: Technology, then Consumer Cyclical. Worst sector: Basic Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 47.21
VIX (neutral under 20): 23.93
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.99
CNN Fear & Greed: 41 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 69.79%
Stocks above SMA200 (neutral above 30): 28.32%
Number of stocks that increased yesterday by more than 4%: 423
Number of stocks that decreased yesterday by more than 4%: 130
McClellan Oscillator (neutral between -100 and 100): 105.63
Earnings Reports
AMD AMD 0.00%↑ beats on earnings and revenue, but the third-quarter forecast comes in light. Starbucks SBUX 0.00%↑ earnings beat Wall Street estimates, fueled by U.S. demand for cold drinks. Airbnb ABNB 0.00%↑ stock slumps despite record-breaking bookings. Ferrari RACE 0.00%↑ boosts full-year guidance after a record second quarter. Uber UBER 0.00%↑ reports another big loss but beats on revenue, shares pop 19%.
Other noteworthy earnings reports for today:
What to trade today
Even if there are a lot of political tensions, the market seems it doesn't care, price action is constructive. A lot of breakouts worked well and money was flowing in these.
Ufp Technology made a beautiful breakout and had a strong close.
GTLB 0.00%↑ was also triggered.
I will also watch:
F5 Inc FFIV 0.00%↑ had a good accumulation while the correction is made in time with low volumes. A breakout above the black line might work. Stop Loss: yesterday’s low.
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.