Trading Plan: 8 March 2022
Market insights
Red wide range bar for Nasdaq (-3.62%) yesterday with above average volumes. We might see a short bounce, but the overall trend can continue lower to the next supports: 12400 and 12000 areas.
SP-500 (-2.95%) down on big volumes. Watching the February lows and the 4000 area. It will take time to repair the damage and surely it will pass weeks (or months?) to come back to January or February highs. Waiting to form a bottom and then a solid base.
In the news
Russian invasion threatens the global food supply.
Some tech stocks are down 75% from their highs last year.
Mandiant ($MNDT) spikes 16% on report Google is in talks to acquire the company.
European markets are set to fall further as Russia-Ukraine fears persist.
Sectors
Best yesterday sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Best weekly sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Best monthly sector: Energy, then Basic Materials. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 30.30
VIX (neutral under 20): 36.456
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.92
CNN Fear & Greed: 13 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 31.20%
Stocks above SMA200 (neutral above 30): 27.78%
Number of stocks that increased yesterday by more than 4%: 169
Number of stocks that decreased yesterday by more than 4%: 1012
Earnings Reports
Dick’s Sporting Goods ($DKS) will report fourth-quarter earnings before the March 9 open. Analysts are forecasting fourth-quarter earnings of $3.43 per share for Dick’s Sporting Goods, which is 41.2% more than what the company reported in the year-ago period. Revenue, meanwhile, is expected to arrive at $3.3 billion, +5.4% year-over-year (YoY).
Noteworthy earnings reports for today:
What to trade today
Volatility is high for the swing trader and it is very difficult to find a good low-risk entry on the daily chart. Good price action in some industries (oils, materials, fertilizers, etc.) but very extended and very risky now.
If taken yesterday's trades from the Trading Plan, please consider moving the Stop Loss at breakeven to protect the gains.
Amplitude ($AMPL) is about to break down. If price under the black line and volumes come in, it can be shorted with Stop Loss at yesterday high.
Globel-E Online ($GLBE) might go lower based on this setup. Short under the black line, Stop Loss at yesterday high.
Affirm ($AFRM): price was rejected by the declining EMA21. If under the black line, it can be shorted. Stop Loss yesterday high.
Upstart ($UPST) might go lower if the “higher lows trend” is broken. Stop Loss at max. 4–5%.
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.