Nasdaq (-2.18%) gapped down and continued the downtrend with volumes higher than Friday. Price is now under all the main averages (EMA21, SMA50, SMA200). There is no support until the February low so extreme caution is needed.
SP-500 (-1.69%) shows the same picture as the above index. All the sectors closed in red yesterday. Blue Chips decreased by at least 2%. Watching the 4280 area and then the February lows.
In the news
U.S. Stocks Drop as Bond Yields Climb. White House says it expects inflation to be ‘extraordinarily elevated’ in a new report.
S&P downgrade indicates Russia is headed for historic default.
Etsy increased its transaction fees by +1.5% to 6.5% and in response, Etsy sellers are on strike.
T&T Shares Climb After Warner Bros. Discovery Deal.
Chinese electric car company Nio hikes prices and suspends production.
Bitcoin Struggles In Spite of High-Energy Miami Crypto Week.
Sectors
- Best yesterday sector: Industrials, then Consumer Defensive. Worst sector: Energy.
- Best weekly sector: Consumer Defensive, then Healthcare. Worst sector: Technology.
- Best monthly sector: Consumer Defensive, then Healthcare. Worst sector: Industrials.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 83.41
- VIX (neutral under 20): 24.37
- Equity Put / Call Ratio (neutral between 0.7 and 1): 1.01
- CNN Fear & Greed: 46 (Neutral)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 45.84%
- Stocks above SMA200 (neutral above 30): 33.57%
- Number of stocks that increased yesterday by more than 4%: 134
- Number of stocks that decreased yesterday by more than 4%: 343
- McClellan Oscillator (neutral between -100 and 100): -68.47
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
There is not a time to go long in the market. Do not forget cash is also a position.
$INMD was a great short trade yesterday (Stop Loss at breakeven now), while $ETSY and $ASAN are still in the game, not triggered yet.
Even if the market gapped down, the growth stocks (including the recurring revenue companies) made a pause or even a slightly increased. Generally, these kinds of stocks reverse the trend first.
Besides the already mention stocks above, I do not intend to trade anything else for today.
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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