Trading Plan: 7 July 2022
Nasdaq (+0.35%) closed slightly higher, above the EMA21. The volumes were low - for this type of yesterday action and a Doji candle, it’s not necessarily bad. The target remains unchanged: breaking above the downtrend line with volume. If not, keep an eye on the recent lows.
SP-500 (+0.36%) closed also in green. The Doji candle means indecision, so we just wait the next few days for more clues. The same idea here: watching the downtrend line vs. the recent lows.
In the news
Amazon takes a stake in Grubhub and adds food delivery perks to Prime.
Crypto brokerage Voyager Digital files for Chapter 11 bankruptcy protection.
Billions in bitcoin trapped on lending platforms like Celsius may turn into a tax write-off for investors.
Hulu is facing an existential crisis as Disney approaches a 2024 deadline to buy Comcast’s 33% stake.
Apple Ratchets Up Security Tool for iPhone Users Targeted by Sophisticated Spyware.
Sectors
Best yesterday sector: Utilities, then Technology. Worst sector: Energy.
Best weekly sector: Healthcare, then Communication Services. Worst sector: Energy.
Best monthly sector: Healthcare, then Consumer Defensive. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 30.66
VIX (neutral under 20): 26.73
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.87
CNN Fear & Greed: 24 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 28.57%
Stocks above SMA200 (neutral above 30): 15.27%
Number of stocks that increased yesterday by more than 4%: 200
Number of stocks that decreased yesterday by more than 4%: 188
McClellan Oscillator (neutral between -100 and 100): -14.49
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
The market made a pause, but the mentioned stocks on yesterday's Trading Plan are still in the game. UTHR 0.00%↑ made a nice breakout.
More ideas:
Sea Limited SE 0.00%↑ made a constructive retracement yesterday after the good advance from the day before. If volume comes in and the price passes the downtrend line, the trade might work. Stop Loss: yesterday’s low.
Exlservice Holdings EXLS 0.00%↑ builds higher lows while approaching the ATH. A breakout from this cup and handle might work. Stop Loss: yesterday’s low.
MongoDB MDB 0.00%↑: we might see a breakout from this pattern if the price goes above the black line. Stop Loss: yesterday’s low.
Taking into account the bear market, if trading, you may consider using a 1/2 or even 1/3 position to test. Consider also using tighter stops as well.
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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