Trading Plan: 9 May 2022
Nasdaq (-1.40%) was rejected by the 12000 level, but is still in a bearish mode. The risk is real as the next support is in the 10800-10500 area, so attention is required.
SP-500 (-0.57%) was able to close above the support. It seems the buyers came in again at this level. A close under this level may send the price to ~3850 as there is no strong support until that level.
In the news
Stock Futures Fall as Bond Yields Edge Higher.
Bitcoin drops below $34,000 to hit its lowest level since January after stock sell-off.
Google’s cloud group forms a Web3 team to capitalize on the booming popularity of crypto.
Nvidia didn’t tell investors enough about the effects of crypto mining on its business, SEC says.
Sectors
Best yesterday sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Best weekly sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
Best monthly sector: Energy, then Consumer Defensive. Worst sector: Communication Services.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 57.18
VIX (neutral under 20): 30.19
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.15
CNN Fear & Greed: 31 (Fear)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 27.42%
Stocks above SMA200 (neutral above 30): 26.78%
Number of stocks that increased yesterday by more than 4%: 102
Number of stocks that decreased yesterday by more than 4%: 601
McClellan Oscillator (neutral between -100 and 100): -78.71
Earnings Reports
Under Armour stock falls as the company offers weak guidance and posts unexpected losses. Adidas lowers 2022 expectations amid China lockdowns.
Noteworthy earnings reports for today:
What to trade today
This market is not easy, even if it is weak, take trades progressively and add only if on profit. Cash is also a position.
I will watch:
Deere & Co ($DE) - the support is very close to the SMA200. A breakdown under these levels might send the price much lower. Stop Loss: $380.
Lilium ($LILM) is looking good for a short. If the price break the black line, the trade might work. Stop Loss at $3.18.
Even if there are some nice bullish patterns, this market action increases the probability of a fake breakout. But if the market shows strength, you may consider:
Delek Logistics ($DKL) for a long. The price stays nicely above the EMA21. Long if price > $50.71. Stop Loss: $49.
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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