Trading Plan: 6 October 2022
Nasdaq (-0.25%) gapped down in the morning, almost closed Tuesday’s gap and during the day was able to recover and closed at the highs. The volumes were under-average and the price action might be constructive if the price closes above the EMA21. Watching the marked levels and EMA21 for now.
SP-500 (-0.20%) touched both the high and low of the previous day and stayed between these limits. This “indecision” inside day candle let the door open for all scenarios. Watching yesterday's & last week's low vs. EMA21 and 3900 area.
In the news
Businesses added 208,000 jobs in September, better than expected, ADP reports.
Euro zone likely to endure recession as downturn deepens.
REI dumps Black Friday — permanently.
OPEC+ to cut oil production by 2 million barrels per day to shore up prices, defying U.S. pressure.
Ford Tripled Its EV Sales Despite a Dip in Total Deliveries.
Sectors
Best yesterday sector: Energy, then Technology. Worst sector: Consumer Real Estate.
Best weekly sector: Energy, then Basic Materials. Worst sector: Utilities.
Best monthly sector: Energy, then Healthcare. Worst sector: Real Estate.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 12.61
VIX (neutral under 20): 28.55
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.89
CNN Fear & Greed: 30 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 27.10%
Stocks above SMA200 (neutral above 30): 24.91%
Number of stocks that increased yesterday by more than 4%: 172
Number of stocks that decreased yesterday by more than 4%: 133
McClellan Oscillator (neutral between -100 and 100): 30.77
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
I still do not see good low-risk entries.
Even if there are some interesting setups all these gaps (up or down) reduce the chances for a smooth move. VIX decreased, but is still high and forced the ordinary stocks to make huge bars in both directions.
I keep sitting on my hands.
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: