Nasdaq (+2.69%) was rejected by the EMA21 early in the morning and then started to go up all day long and closed strong. This price action and the type of the candle (bullish engulfing) might set up the scene for the best. But… the volumes were below the average. This divergence is just a thing to pay attention to.
SP-500 (+1.84%) made a similar move and the price stays now very well above the EMA21. We might see a consolidation here while a confirmation will occur. As already mentioned, the critical signal is to see the ‘big’ money entering the market (the uptrend might continue, but if done with low volumes, the move might be easily reversed).
In the news
Cruise, General Motors majority-owned autonomous vehicle unit, has scored final approvals to operate a commercial, robotaxi service in San Francisco.
Ford adds 6,200 new US jobs to boost EV, gas-powered car production.
Teetering on default, Russia misses a $1.9 mln payment, the committee determines.
Microsoft Cuts Earnings and Revenue Guidance, Citing a Stronger U.S. Dollar.
Cannabis Companies Try the Metaverse as a New Marketing Platform.
Sectors
Best yesterday sector: Consumer Cyclical, then Technology. Worst sector: Energy.
Best weekly sector: Consumer Cyclical, then Technology. Worst sector: Healthcare.
Best monthly sector: Energy, then Utilities. Worst sector: Consumer Defensive.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 34.33
VIX (neutral under 20): 24.72
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.93
CNN Fear & Greed: 29 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 47.86%
Stocks above SMA200 (neutral above 30): 28.35%
Number of stocks that increased yesterday by more than 4%: 686
Number of stocks that decreased yesterday by more than 4%: 61
McClellan Oscillator (neutral between -100 and 100): 137.09
Earnings Reports
Lululemon LULU 0.00%↑ raises guidance as customers keep spending despite higher prices.
Noteworthy earnings reports for today:
What to trade today
Very good action for all the mentioned trades on the yesterday's Trading Plan:
You may consider tightening the Stop Loss.
Shopify SHOP 0.00%↑ seems it wants to breakout from this W pattern. Low volumes and declining ATR. Stop Loss: 5%.
Digital Ocean DOCN 0.00%↑ shows a nice flag pattern. If the price goes above the black line, the trade might work. Stop Loss: 5%.
Micron MU 0.00%↑ stays patiently above the SMA50 while the volumes and ATR are decreasing. You may trade the breakout above the black line, Stop Loss: 5.%.
Perficient PRFT 0.00%↑ shows a wide range bar igniting from the EMA21 and a good close above the SMA50. A continuation is very likely, so a trade above yesterday's high might work (take into consideration a possible retracement). Stop Loss: 5%.
The next Trading Plan will be out on the 14th of June. Until then, I will be around and doing activities like $RUN, $SWIM, laying on the $SAND under the $SUN or $EAT. I will study the waves and fishes’ actions against the water currents. But no, I will not try to find any bottom.
Have a great week, $LOVE and Good Luck!
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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Have a nice holiday!
Enjoy your time off!