Trading Plan: 8 April 2022
Nasdaq (+0.06%) had a difficult morning but was able to close above the SMA50. This is a key point now, a close below it might send the price much lower as there is no real support until the March lows.
SP-500 (0.43%) closed above the SMA200 and above yesterday's high. The volumes were lower than yesterday. Watching for now the direction towards SMA50 or resistance at the 4600 area.
In the news
Warren Buffett made about $650 million on HP after the stake was revealed
Twitter’s edit button isn’t just a simple fix. It could be a mistake.
Amazon, Alphabet and others are quietly rolling out drone delivery across America.
Amid Zoom fatigue, companies experiment with holograms in the office.
Sectors
Best yesterday sector: Healthcare, then Energy. Worst sector: Real Estate.
Best weekly sector: Healthcare, then Consumer Defensive. Worst sector: Technology.
Best monthly sector: Healthcare, then Utilities. Worst sector: Industrials.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 83.41
VIX (neutral under 20): 21.55
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.88
CNN Fear & Greed: 48 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 47.60%
Stocks above SMA200 (neutral above 30): 34.25%
Number of stocks that increased yesterday by more than 4%: 179
Number of stocks that decreased yesterday by more than 4%: 192
McClellan Oscillator (neutral between -100 and 100): -51.67
Earnings Reports
Constellation Brands blitzed 4.61% higher topping earnings and sales estimates. $STZ also announced that it will buy back $500 million worth of stock based on yesterday’s closing price.
Noteworthy earnings reports for today:
What to trade today
Both investors and traders seem to wait for a market direction. The news about multiple rate hikes and QT starting in May still keeps the market balanced.
It is better to wait for confirmation before entering full positions.
Even though there are stocks making new highs (this is a bullish sign in the market), most of the stocks that hit my scans are not forming any pattern or if they do, they are too extended from their main averages.
Just watching.
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.