Trading Plan: 21 April 2022
Nasdaq (-1.22%) is still playing in the recently created area and under all the main averages. Hard to trade in this choppy market. Watching the SMA50 and recent lows first for confirmation first. Note that a price below ~13200 area might suggest a strong move to the downside as there is no real support until the February lows.
SP-500 (-0.06%) was flat yesterday and succeeded to stay above both SMA50 and EMA21. A move above 4500 (SMA200) may lead to an advance to recent highs (~4600 area). Also, watch the 4370 level as well if the market is weak.
In the news
IBM stock has its best day in two years as analysts raise estimates.
Netflix hypes gaming strategy as subscribers sag.
Amazon opens up Prime delivery service to other retailers in its latest move to compete with FedEx and UPS.
U.S. Treasury sanctions Russian bitcoin miners as war enters its third month.
Sectors
- Best yesterday sector: Real Estate, then Consumer Defensive. Worst sector: Communication Services.
- Best weekly sector: Real Estate, then Industrials. Worst sector: Communication Services.
- Best monthly sector: Consumer Defensive, then Utilities. Worst sector: Communication Services.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 63.29
- VIX (neutral under 20): 20.32
- Equity Put / Call Ratio (neutral between 0.7 and 1): 0.95
- CNN Fear & Greed: 39 (Fear)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 56.83%
- Stocks above SMA200 (neutral above 30): 39.37%
- Number of stocks that increased yesterday by more than 4%: 227
- Number of stocks that decreased yesterday by more than 4%: 222
- McClellan Oscillator (neutral between -100 and 100): 59.05
Earnings Reports
Tesla reports $18.76 billion in revenue and record margins in Q1 and Posts Record $3.3 Billion Quarterly Profit. Procter & Gamblegained 2.66% and closed less than half a percent away from record-highs. The American consumer goods giant beat on the top and bottom line with organic sales growing 10%. United Airlinesflew 7.9% in extended trading after it expects to turn profitable and report record revenue in the second quarter.
Noteworthy earnings reports for today:
What to trade today
Besides the non-triggered stocks ($CVX, $EOG, $PANW, $CLF, $OXY) which are still in a good pattern, I will watch:
Humana ($HUM) has a great base with many attempts to break the resistance. If succeded, the trade might work, Stop Loss at yesterday’s low - $450 area.
Hashi Corp ($HCP) stays beautifully above the EMA21 and SMA50. If the price goes above the black line, the trade might work. Stop Loss at 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.
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