Trading Plan: 5 August 2022
Nasdaq (+0.41%) closed in green with above-average volumes. It continued its rally and it heads to the next resistance. A pullback was expected after the advance, but it seems the price keeps on advancing. Watching the 13000 level and the EMA21 area.
SP-500 (-0.08%) closed flat and is consolidating just under its resistance. A pause here might be constructive to ease the way through the overhead supply. Watching this resistance level and EMA21 area / recent lows.
In the news
Elon Musk Suggests Big Tesla TSLA 0.00%↑ Factory Expansion Plans.
DoorDash DASH 0.00%↑ stock pops 18% after the company posts a record number of orders.
GM's GM 0.00%↑ hands-free driving tech is set for a massive expansion.
Coinbase COIN 0.00%↑ teaming up with BlackRock BLK 0.00%↑ in a partnership that will allow the world’s largest asset manager’s institutional clients to buy bitcoin.
The confusing job market: Tech and finance brace for the worst, retail is mixed, travel can’t hire fast enough.
Mortgage rates fall below 5%.
Sectors
Best yesterday sector: Basic Materials, then Industrials. Worst sector: Energy.
Best weekly sector: Consumer Cyclical, then Technology. Worst sector: Energy.
Best monthly sector: Technology, then Consumer Cyclical. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 55.28
VIX (neutral under 20): 21.44
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.86
CNN Fear & Greed: 47 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 69.80%
Stocks above SMA200 (neutral above 30): 28.18%
Number of stocks that increased yesterday by more than 4%: 486
Number of stocks that decreased yesterday by more than 4%: 268
McClellan Oscillator (neutral between -100 and 100): 94.80
Earnings Reports
Cloudflare NET 0.00%↑ surged following the company’s better-than-expected earnings report. Twilio TWLO 0.00%↑ is trading down after its earnings report came in below expectations. Block SQ 0.00%↑ is down after its operating profit, and Square’s payment volume missed estimates.
DraftKings DKNG 0.00%↑ will round out the week's earnings calendar when it unveils its second-quarter results ahead of Friday's open. Analysts, on average, are targeting a per-share loss of 83 cents (-9.2% YoY) and revenue of $435.1 million (+46.2 YoY).
Other noteworthy earnings reports for today:
What to trade today
We faced some sector rotation lately and some big down reversal in some stocksLNTH 0.00%↑, TPL 0.00%↑, UTHR 0.00%↑ just to name a few. Maybe it’s nothing, but it is better to be cautious and tighten the Stop Loss levels.
I will watch today the market, but I will be very careful with new longs.
Bumble BMBL 0.00%↑ stays constructively on the EMA21. Low volumes and ATR. Mean reversion pattern, a price above the marked level might work. Stop Loss: EMA21.
Zscaler ZS 0.00%↑ might reverse the downtrend if the price goes above the black line. Stop Loss: yesterday’s low.
Continue watching: VRTX 0.00%↑, DE 0.00%↑, HUM 0.00%↑.
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.