Trading Plan: 9 August 2022
Nasdaq (-0.10%) tried to advance but the overhead supply came in to push the price back down and forced the price to stay flat. This topping tail with higher volume than average might signal a resistance rejection. As always, be open to all scenarios: watching the 13000 level but also the recent lows.
SP-500 (-0.12%) touched the resistance but the price was also pushed back by the overhead supply. It seems this is a strong level here and as already said, we might see a consolidation here for a stronger breakout (if the case, of course). If not, watch the EMA 21 and recent lows.
In the news
Axios agrees to sell to Cox Enterprises for $525 million.
SoftBank posts a $21.6 billion quarterly loss on its Vision Fund, one of the highest in its history.
The Other Electric Vehicle: E-Bikes Gain Ground for Americans Avoiding Gas Cars.
Consumers expect inflation to slow down, a big win for the Fed.
99 percent of Netflix subscribers haven’t tried its games yet.
Sectors
Best yesterday sector: Energy, then Basic Materials. Worst sector: Technology.
Best weekly sector: Technology, then Communication Services. Worst sector: Energy.
Best monthly sector: Technology, then Industrials. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 55.28
VIX (neutral under 20): 21.29
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.99
CNN Fear & Greed: 50 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 74.09%
Stocks above SMA200 (neutral above 30): 30.75%
Number of stocks that increased yesterday by more than 4%: 509
Number of stocks that decreased yesterday by more than 4%: 116
McClellan Oscillator (neutral between -100 and 100): 110.22
Earnings Reports
Palantir PLTR 0.00%↑ shares fell more than 14% following the earnings report. TSN 0.00%↑ shares were down 8.40% as it joins many other companies citing a tougher macro environment and inflation as major headwinds. Upstart UPST 0.00%↑ rallied 9% ahead of its earnings before giving it all back (and more) after the report.
Coinbase Global COIN 0.00%↑ made headlines this week when it unveiled a partnership with BlackRock BLK 0.00%↑ the world's largest asset management firm. The deal will allow BlackRock's institutional investors to buy bitcoin via the cryptocurrency platform. Analysts, on average, expect Coinbase to report a per-share loss of $2.68 for its second quarter – compared to the per-share profit of $6.42 it earned in the year-ago period. Revenue is projected to arrive at $830.5 million, down 53.2% year-over-year (YoY).
Other noteworthy earnings reports for today:
What to trade today
Yesterday was not an easy day as the market is at a strong resistance point which might be (a little bit) difficult to pass. Hard to say where the market will aim its direction, so I think it is better to wait at least 1-2 days before opening new positions.
For now, tighten your Stop Loss and… wait. It is safer.
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.