Trading Plan: 30 September 2022
Nasdaq (-2.84%) tested again the support. It seems the support is strong… until it doesn't. This pause might finish later today when news regarding inflation will be out. But, you know, no predictions. Until now, we are in a zone with no clear trend clues, so, we just wait. Watching the recent highs and lows.
SP-500 (-2.11%) undercut the support but buyers came in fast two times during the day. These jigsaw moves are dangerous for the trader. Until a trend is in place, patience is the key word, waiting for some bold moves, up or down. Hard to tell. Still waiting for clues.
In the news
Mark Zuckerberg says Meta will freeze hiring and cut costs.
Twitter is adding a new TikTok-like full-screen video feature.
McDonald’s is releasing new Happy Meals for adults to recreate ‘one of the most nostalgic experiences.
U.S. weekly jobless claims hit five-month low; economic picture darkening.
Russia to annex four occupied regions of Ukraine on Friday. Zelensky: Annexation of Ukraine "will not mean" what Russia hopes for.
Sectors
Best yesterday sector: Energy, then Healthcare. Worst sector: Utilities.
Best weekly sector: Healthcare, then Basic Materials. Worst sector: Utilities.
Best monthly sector: Healthcare, then Consumer Defensive. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 12.61
VIX (neutral under 20): 31.84
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.12
CNN Fear & Greed: 16 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 12.80%
Stocks above SMA200 (neutral above 30): 17.84%
Number of stocks that increased yesterday by more than 4%: 67
Number of stocks that decreased yesterday by more than 4%: 585
McClellan Oscillator (neutral between -100 and 100): -152.88
Earnings Reports
Rite Aid RAD 0.00%↑ tumbled after a big earnings miss. The drugstore chain reported adjusted earnings per share loss of $0.63, below the $0.50 expected. Nike NKE 0.00%↑ shares fall as overstocked inventory weighs on earnings. Bed Bath & Beyond BBY 0.00%↑ reports a 28% drop in sales as it presses ahead with a turnaround plan.
Noteworthy earnings reports for today:
What to trade today
After a good day (Wednesday), yesterday market wiped out (part of) the gains. Or more than that. Definitely, not a good environment for the trend-following trader.
No trend, no trade. No pattern, no trade. No edge, no trade.
No plan to trade today. Patience.
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: