Trading Plan: 8 July 2022
Nasdaq (+2.28%) escaped from the downtrend channel and succeeded to stay and close above the EMA21. The next milestone is SMA50 and if we see volumes coming in, we might see higher prices. But always be prepared for all scenarios, the market is always smarter.
SP-500 (+1.50%) advanced and was able to close above the EMA21. The volumes are not great. It doesn't mean it is bad, but the move might be vulnerable. Watching for the next levels: SMA50 vs. recent lows.
In the news
Shares of Twitter fell after markets closed on Thursday following a report from The Washington Post that said billionaire Elon Musk’s deal to buy the company is in jeopardy.
Volkswagen CEO says EV outlook is ‘very good,’ expects to reduce delivery times this year.
Mortgage Rates Fall to 5.30%, Reflecting Recession Fears.
Boeing CEO says the planemaker could be forced to cancel 737 MAX 10.
Meta nudges its big VR push another step away from the Facebook legacy.
Sectors
Best yesterday sector: Energy, then Consumer Cyclical. Worst sector: Consumer Defensive.
Best weekly sector: Consumer Cyclical, then Communication Services. Worst sector: Energy.
Best monthly sector: Healthcare, then Consumer Defensive. Worst sector: Energy.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 27.85
VIX (neutral under 20): 26.08
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.81
CNN Fear & Greed: 28 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 33.51%
Stocks above SMA200 (neutral above 30): 17.16%
Number of stocks that increased yesterday by more than 4%: 692
Number of stocks that decreased yesterday by more than 4%: 45
McClellan Oscillator (neutral between -100 and 100): 58.20
Earnings Reports
No noteworthy earnings reports for today.
What to trade today
The market moved up and many already presented stocks are working or still in the game (not triggered yet).
So, besides the already presented in Trading Plans (yesterday and the day before yesterday), here is another idea:
Lantheus Holdings LNTH 0.00%↑ waits patiently around the EMA21 and SMA50. A move above the black line might signal a resumed uptrend. Stop Loss: 5%.
Taking into account that we are still in a 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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