Trading Plan: 30 March 2022
Nasdaq (+1.84%) continued the rally and it is above its short-term resistance and very close to the SMA200. The volumes were higher than the previous days which is a bullish sign, money is entering the market in anticipation of a SMA200 cross.
SP-500 (+1.23%) gapped up and continued the strong uptrend with higher volumes. Statistically, after such a big move, a pause is expected. Always have scenarios in place: ATH direction or filling the gap?!
In the news
The Conference Board’s consumer confidence index posted an unexpected rise in March.
Cannabis stocks are hot ahead of a House panel hearing on a federal legalization bill.
Alibaba led a $60 million investment round into augmented reality glasses maker Nreal.
Apple stock rose for an 11th straight day on Tuesday, marking its longest winning streak since 2003.
War in Ukraine is projected to trigger global growth slowdown.
Sectors
Best yesterday sector: Real Estate, then Consumer Cyclical. Worst sector: Energy.
Best weekly sector: Real Estate, then Technology. Worst sector: Financial.
Best monthly sector: Utilities, then Basic Materials. Worst sector: Consumer Defensive.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 52.69
VIX (neutral under 20): 18.9
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.93
CNN Fear & Greed: 55 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 65.47%
Stocks above SMA200 (neutral above 30): 41.02%
Number of stocks that increased yesterday by more than 4%: 578
Number of stocks that decreased yesterday by more than 4%: 32
Earnings Reports
Micron Technology moved 4.5% higher in AH trading following its Q2 earnings report. $MU topped earnings and sales expectations and is on track to deliver record revenue. Lululemon Athletica leaped 7.7% in extended trading after exceeding earnings forecasts and growing revenue by 23% YoY. Lululemon also approved a $1 billion stock repurchase program.
Noteworthy earnings reports for today:
What to trade today
Very good trades these days, do not forget to adjust the Stop Loss as some of them are extended and a pullback might occur anytime now.
Besides the trades which are acting constructively and not triggered yet, I will watch:
Advanced Micro Devices ($AMD) is above all main averages now and very close to them. A breakout above the short-term support at the black line might signal an uptrend continuation. Stop Loss: 5%.
Lilium ($LILM) might continue back to the highs after the bottoming pattern. If above the black line, it might be bought. Stop Loss at EMA21.
Sea Limited ($SE) might ignite from this double bottom pattern. If above the black line, it can work. Stop Loss: 5%.
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.