Trading Plan: 8 November 2022
Nasdaq (+0.85%) is still in a bear flag. The price is under all the main averages and all the possibilities have equal chances. Watching the marked levels, recent highs and price above EMA21 / SMA50 building the last part of a W pattern OR breaking the recent lows.
SP-500 (0.96%) looks better, closed above both the EMA21 and SMA50. Holding the recent lows might signal strength and go above the recent high could send the prices even higher. Of course, looking for volumes as well. The higher the volumes in the market on the upside advance, the better.
In the news
Stock Futures Edge Higher as Investors Focus on Elections.
Apple warns of lower iPhone shipments as COVID curbs hobble China plant.
Meta shares up on report it’s set to begin mass layoffs.
Foxconn to Invest $170 Million in EV Truck Maker Lordstown Motors.
Sectors
Best yesterday sector: Communication Services, then Technology. Worst sector: Utilities.
Best weekly sector: Basic Materials, then Energy. Worst sector: Technology.
Best monthly sector: Energy, then Industrials. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 54.57
VIX (neutral under 20): 24.35
Put / Call Ratio (neutral between 0.7 and 1): 0.88
CNN Fear & Greed: 61 (Greed)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 61.72%
Stocks above SMA200 (neutral above 30): 38.40%
Number of stocks that increased yesterday by more than 4%: 321
Number of stocks that decreased yesterday by more than 4%: 222
McClellan Oscillator (neutral between -125 and 100): 114.37
Earnings Reports
Take-Two stock dropped more than 15% in extended trading on Monday after the company said its outlook in the current quarter and in early 2023 would be significantly lower than previously expected. Palantir stock falls after a slight earnings miss.
Walt Disney DIS 0.00%↑ will unveil its fiscal fourth-quarter results after Tuesday's close. Analysts, on average, expect DIS to report earnings of 57 cents per share, up 72.7% year-over-year (YoY). Revenue is forecast to arrive at $21.6 billion (+32.6% YoY).
Other noteworthy earnings reports for today:
Here are this week’s earnings:
What to trade today
Patience is still a great “position”. AEHR 0.00%↑ from yesterday's trading plan might signal future good anticipation, but... no FOMO. We still have the inflation data pending on Thursday and it is hard to know how the market will react to that number, no matter if they are "good" or "bad".
Even if the market made a small advance, I wish I saw more volumes. Of course, the money will progressively enter the market, but until now it seems the move is not convincing. Of course, I might be wrong of course, I just look for less risky opportunities and wait for the real tide.
I will watch: PBF 0.00%↑ PARR 0.00%↑ RICK 0.00%↑ TALO 0.00%↑ MUSA 0.00%↑ DCP 0.00%↑ DGII 0.00%↑.
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.
In order to learn more about trading, you may want to read: