Trading Plan: 31 August 2022
Nasdaq (-1.12%) continued its downtrend with average volumes. It is possible to find support in this area as the formed candle has a bottoming tail + some growth stocks reversed and had a good day overall - even if all the sectors closed in red. But, not rushing things, watching the levels: yesterday’s high and a close back above the SMA50 vs. the marked minor support (black line) and recent low (blue line).
SP-500 (-1.10%) closed below the SMA50 with average volumes. We might see here, in this area, a pause since there are some good indications from the historical price action. Watching the marked levels (blue lines).
In the news
First Solar announces new U.S. panel factory.
U.S. consumer confidence rises more than expected in August.
Job openings top 11.2 million in July, well above estimate and nearly double the available workers.
Snap will lay off 20% of staff, report says.
Fed officials see U.S. interest rates rising further.
Sectors
Best yesterday sector: Financial, then Communication Services. Worst sector: Energy.
Best weekly sector: Energy, then Utilities. Worst sector: Technology.
Best monthly sector: Energy, then Utilities. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 54.86
VIX (neutral under 20): 26.21
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.20
CNN Fear & Greed: 49 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 41.42%
Stocks above SMA200 (neutral above 30): 27.42%
Number of stocks that increased yesterday by more than 4%: 114
Number of stocks that decreased yesterday by more than 4%: 387
McClellan Oscillator (neutral between -100 and 100): -172.05
Earnings Reports
Best Buy’s BBY 0.00%↑ quarterly sales drop, as inflation-weary consumers pull back on spending.
Noteworthy earnings reports for today:
What to trade today
Market continued lower and we can only wait for finding support. In the meantime, checking the relative strength industries and stocks is a better idea than trying to find the bottom.
No intention to trade today. Patience. I will watch:
Cheniere Energy LNG 0.00%↑ might come back from its visit to EMA21. Nice bottoming tail, this is bullish.
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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