Trading Plan: 9 March 2022
Nasdaq had a roller-coaster day, with many ups and downs cycles. Another distribution day as it closed on red territory (-0.28%) with important volume, higher than yesterday. Watching the next support level at 12400.
SP-500 also had a distribution day and closed in red (-0.72%) on a news-driven day. Watching the February lows and 4000 area. Very risky to guess the bottom when prices are under the main averages and there are no signs of real support yet.
In the news
Russian sanctions drive a renewed focus on Asia semiconductor reliance.
Analysts warn of recession if oil prices continue to surge further into “uncharted territory”.
Crude oil ascended 4.50% and closed at $124.76 after President Biden banned Russian oil, as well as other energy imports.
McDonald’s, Starbucks, and Coca-Cola leave Russia.
Amazon is turning grocery-picking gig workers into Whole Foods employees as delivery demand booms.
Bed Bath & Beyond added another 5.57% today on top of yesterday’s 34.18% gain following an announcement that GameStop Chairman Ryan Cohen bought a large position in the home-goods retailer, pushing it to consider strategic alternatives.
Sectors
Best yesterday sector: Energy, then Consumer Cyclical. Worst sector: Consumer Defensive.
Best weekly sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Best monthly sector: Energy, then Basic Materials. Worst sector: Consumer Cyclical.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 30.30
VIX (neutral under 20): 35.13
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.96
CNN Fear & Greed: 13 (Extreme Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 30.95%
Stocks above SMA200 (neutral above 30): 27.57%
Number of stocks that increased yesterday by more than 4%: 526
Number of stocks that decreased yesterday by more than 4%: 190
Earnings Reports
Nine Energy Service ($NINE) surged 74.09% today to two-year highs after exceeding earnings and sales expectations. MongoDB topped $1 billion in annualized revenue thanks to 85% growth in Atlas. $MDB moved up 10.36% after hours. Stitch Fix ($SFIX) shares plummet after the company cuts guidance for the year.
Noteworthy earnings reports for today:
What to trade today
This rotation of stocks from day to day is not suitable for the swing trader. Very hard to find entry points.
Even if there are very strong stocks advancing (in Oils, Materials or yesterday in Solar), it is not at all a good idea to chase.
Watching the ideas from yesterday's Trading Plan. It is not at all a time to trade aggressively as there is no clear trend in place. News is pouring in and volatility is here at least by the FED meeting next week.
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.