Trading Plan: 22 March 2022

Lauritzen
2022-03-22

Nasdaq (-0.40%) after such a powerful advance made a pause yesterday since it met the short-term residence. The price action is not bad, this small retracement is “normal”. Watching the price now vs. SMA50. After this “pause”, it is possible to see the price playing between SMA50 and SMA200.

SP-500 (-0.04%) was flat yesterday. The price is still above the SMA50 which might indicate a desire to continue the uptrend. Since the volumes were low, it seems that the buyers and sellers agreed on the price without fighting. It will be a very positive mark when / if the price closes above the SMA200.

In the news

Powell says ‘inflation is much too high’ and the Fed will take ‘necessary steps’ to address. Powell Is Ready to Back Half-Point Hike in May If Necessary.

President Biden reiterated prior warnings that the Kremlin could be “exploring options for potential cyberattacks” against the U.S. during a Monday address.

Alibaba said on Tuesday it will increase the size of its share buyback program from $15 billion to $25 billion, effective for a two-year period through March 2024.

Goldman is the first major U.S. bank to trade crypto over the counter.

Sectors

  • Best yesterday sector:Energy, then Basic Materials. Worst sector: Consumer Cyclical.
  • Best weekly sector:Consumer Cyclical, then Technology. Worst sector: Utilities.
  • Best monthly sector:Energy, then Basic Materials. Worst sector: Consumer Cyclical.

Sentiment

  • NAAIM (weekly, neutral between 70 and 90): 46.68
  • VIX (neutral under 20): 23.53
  • Equity Put / Call Ratio (neutral between 0.7 and 1): 0.83
  • CNN Fear & Greed: 38 (Fear)

Breadth

  • Stocks above SMA40 (neutral between 30 and 80): 54.10%
  • Stocks above SMA200 (neutral above 30): 36.12%
  • Number of stocks that increased yesterday by more than 4%: 150
  • Number of stocks that decreased yesterday by more than 4%: 64

Earnings Reports

Nike’s fiscal third-quarter results topped analysts’ estimates thanks to robust North American demand and the stock climbed 6% in AH after posting earnings which boosted investors’ confidence.

Noteworthy earnings reports for today:

What to trade today

Treasury yields surged on the FED news (Powell insinuated that he would support 0.50% interest rate hikes) and stocks went lower.

All the stocks mentioned on yesterday'sTrading Planare in the game (consolidation or already breakout). Consider verifying and adjusting your Stop Loss values based on your risk strategy.

Broadcom ($AVGO) is set very well. The volumes are low, ATR decreasing, price very close to EMA21/SMA50. If the price breaks the resistance, it can be bought. Stop Loss at EMA21.

Lucid Motors ($LCID) might mark the bottom. If the price is going above the black line it can be bought with Stop Loss at $24.50.

Amazon ($AMZN) is about the pass its short-term resistance. If the price passes yesterday high it can be bought with 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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Comments

  • BellaFaraday
    2022-03-22
    BellaFaraday
    Do you think SHOPIFY's current share price is cost-effective?
    • Lauritzen
      I am not an investor in SHOP, I do not know.
  • MortimerDodd
    2022-03-22
    MortimerDodd
    Are you still optimistic about the stock market in the first half of the year?
    • Lauritzen
      I trade based on price action. For me, it doesn't matter the direction of the market. I trade only low risk patterns, no matter the direction.
    • MortimerDoddReplyLauritzen
      It seems you are an experienced trader, good luck.
  • bubblyx
    2022-03-22
    bubblyx
    Thanks your wonderful analysis.
  • Shirleyopy
    2022-03-23
    Shirleyopy
    It is exciting to see how the market will move next week
  • LiverpoolNBA
    2022-03-23
    LiverpoolNBA
    Let strike hard..
  • Enliven22
    2022-03-23
    Enliven22
    Thanks for sharing
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