Nasdaq (+1.63%) closed higher yesterday with higher volumes and a bottoming candle. This might signal a reversion but a real FTD (follow-through day) is the first step in assessing for a new uptrend. Also, be prepared for lower lows to new support levels.
SP-500 (+0.57%) closed higher with important volumes. February low acted as real support and send the price back to a higher value than Friday’s close. Watching for higher lows now. But a close lower than yesterday's low might send the price under 4000.
In the news
Biden kicks off a $3 billion plan to boost battery production for electric vehicles.
Buffett bought more Apple last quarter and says he would have added more if the stock didn’t rebound.
Bill Gates on Covid: ‘I don’t want to be a voice of doom and gloom,’ but ‘the worst’ could still be ahead.
Treasury Yields Top 3%, Stock Futures Rise Ahead of Fed Meeting.
Sectors
Best yesterday sector: Communication Services, then Technology. Worst sector: Real Estate.
Best weekly sector: Energy, then Basic Materials. Worst sector: Basic Real Estate.
Best monthly sector: Consumer Defensive, then Energy. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 46.25
VIX (neutral under 20): 32.34
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.22
CNN Fear & Greed: 27 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 27.80%
Stocks above SMA200 (neutral above 30): 27.36%
Number of stocks that increased yesterday by more than 4%: 573
Number of stocks that decreased yesterday by more than 4%: 147
McClellan Oscillator (neutral between -100 and 100): -88.09
Earnings Reports
Expedia ($EXPE) reported total bookings up 58% in Q1 2022, totaling $24.4 billion. Bookings are still down 17% from Q1 20219. Revenue was up 78% in lodging, up 50% for air travel, and advertising/media revenue gained 88%. MGM Resorts International ($MGM) increased its net revenues by +73% YoY and reported adjusted diluted earnings per share of $0.01 in Q1 2022, as opposed to an adjusted loss of $0.68/share in Q1 of 2021. Avis Budget International ($CAR) similarly posted positive results. The company increased its net revenues to $2.4 billion, +77% YoY. Avis also recorded a utilization figure of 68.9% which basically matched Avis’ 2019 fleet utilization.
Advanced Micro Devices ($AMD) has been hit hard with broad-market headwinds in 2022, down more than 38% the year-to-date. Consensus estimates are for Advanced Micro Devices to report earnings of 91 cents per share, up 75% year-over-year (YoY), and revenue of $5.5 billion (+60.3% YoY). Pfizer ($PFE) will unveil its first-quarter results ahead of Tuesday’s open. Analysts are anticipating earnings of $1.48 per share, (+59% YoY). Revenue is expected to arrive at $24.0 billion (+64.4% YoY).
Other noteworthy earnings reports for today:
What to trade today
Hard to trade in this environment. We might see a reversal and higher levels. The higher the volumes, the better, but until then, patience is better.
If trading, you may consider using smaller positions (1/3–1/2 of the normal size) and / or progressive exposure.
No FOMO.
No planned trades for today, just watching.
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.
In order to learn more about trading, you may want to read:
Follow me on Twitter for market updates.
Terrific information! Thank you.