Trading Plan: 8 February 2022
Nasdaq was weak yesterday (-0.58%) and even if the volumes were under the average, the pattern looks bearish. A break down under 13.850 might sent the price back to the lows and a test of the 13.000 is very likely. Overall volumes are decreasing, there is no sign of reentering the market yet.
SP-500 (-0.37%) above the SMA200 but the Doji shows again the indecision in the market. As already mentioned, this is not a good time to trade aggressively, cash is better as there are no signs of a clear trend. More than that, QE is coming to an end and in March there are many chances for a rate hikes announcement. I will analyze the price action and act upon it.
Rumor has it that companies like Amazon, Apple, and Nike all have an interest in purchasing Peloton (+19.92%).
Frontier and Spirit to merge, creating the fifth-largest airline in the U.S.
Meta says it may shut down Facebook and Instagram in Europe over the data-sharing dispute.
Bitcoin rises to its highest level in a month, bouncing from January lows.
Sectors
Best yesterday sector: Basic Materials, then Energy. Worst sector: Communication Services.
Best weekly sector: Energy, then Basic Materials. Worst sector: Communication Services.
Best monthly sector: Energy, then Financial. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 62.54
VIX (neutral under 20): 22.86
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.93
CNN Fear & Greed: 34 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 28.06%
Stocks above SMA200 (neutral above 30): 29.01%
Number of stocks that increased yesterday by more than 4%: 342
Number of stocks that decreased yesterday by more than 4%: 97
Noteworthy Earnings Reports / Events for today
Peleton issued preliminary numbers for its fiscal Q2 in late January, saying it expects revenue to arrive at $1.14 billion versus previous guidance of $1.1 billion to $1.2 billion. The company also anticipates it ended the quarter with 2.77 million subscribers, lower than its prior guidance of 2.8 million to 2.85 million.
Other earnings reports:
What to trade today
The morning was interesting, up, but no volume! Latter and in the second part of the day, mostly all stocks come back from where they started. Another bearish sign. Crypto stocks showed RS (relative strength) and were able to keep the profits. There are many rotations between the industries and it is difficult to catch a trend now. Silver, Gold, Shipping, Leisure shined on yesterday, but no low-risk entries.
No new trades for today.
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.