Trading Plan: 4 October 2022
Nasdaq (+2.27%) reversed from the support. Volumes are still under the average and it is still difficult to assess if it is the bottom or just a bear rally. This support level is a key indicator for further development, so we will watch closely. If there will be a new up trend, we will watch the marked levels on the chart. And of course, looking for bold moves, supported by volumes.
SP-500 (+2.59%) also snapped back from support. The move here was stronger, with volumes above the average. This rally (short squeeze / bear / reversal, who knows the type?!) might be a mean reversion - watching the 3800-3900 area carefully for clues. Also, keep an eye on the marked levels.
In the news
Oil jumps about $4 as OPEC+ weighs the biggest output cut since 2020.
Tesla shares dip more than 8% after the third-quarter deliveries report.
AstraZeneca pays a 660% premium for gene therapy firm LogicBio.
How John Deere plans to build a world of fully autonomous farming by 2030.
Cargo ships are canceling sailings on major routes as inflation prompts buyers to stop buying imported goods.
Credit Suisse shares hit by worries over financial health.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Consumer Cyclical.
Best weekly sector: Energy, then Basic Materials. Worst sector: Utilities.
Best monthly sector: Basic Materials, then Energy. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 12.61
VIX (neutral under 20): 30.10
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.96
CNN Fear & Greed: 23 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 18.61%
Stocks above SMA200 (neutral above 30): 21.17%
Number of stocks that increased yesterday by more than 4%: 650
Number of stocks that decreased yesterday by more than 4%: 94
McClellan Oscillator (neutral between -100 and 100): -34.82
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
There were some good breakouts yesterday and constructive price action: CCRN 0.00%↑ DGII 0.00%↑ REGN 0.00%↑ IRDM 0.00%↑. Still not the best conditions (you know, when all clear, it might be to late), risky to make bets and the best approach (in my oppinion) is to... wait.
Definitely, there are stocks setting up, but the market is in a turbulence zone. I keep on watching the potential leaders and some setups FREY 0.00%↑ TA 0.00%↑ LNG 0.00%↑ WOLF 0.00%↑ CEG 0.00%↑ TH 0.00%↑ MNTK 0.00%↑ NBIX 0.00%↑ KRTX 0.00%↑ BSM 0.00%↑ FSLR 0.00%↑ INSW 0.00%↑ PCTY 0.00%↑ RYTM 0.00%↑ TNK 0.00%↑ VRTX 0.00%↑ from aside.
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: