Trading Plan: 25 March 2022

Lauritzen
2022-03-25

Another positive day for Nasdaq (+1.93%) with average volumes. It would have been better to see higher volumes in this advance to assess the uptrend as strong. But, as always, the market doesn't care about our thoughts. Price action is bullish for now. Still watching the area between the SMA50 and SMA200.

SP-500 also had a good advance (+1.43%) but here the volumes are below average. It might be a divergence here or just a constructive consolidation at the 4520 level. Watching the area between 4400 and 4600.

In the news

House Rules Committee will vote on the federal legalization of marijuana next week (pot stocks had double-digit gains after hours).

Russia might accept bitcoin as payment for its oil and gas exports as Western countries stiffen sanctions.

European regulators have come to an agreement on major competition rules that could force the world’s biggest tech platforms, including Google, Apple, Facebook, Amazon and Microsoft, to reshape big chunks of their business.

U.S. labor market tightens as weekly jobless claims hit the lowest level since 1969.

Sectors

  • Best yesterday sector: Technology, then Communication Services. Worst sector: Energy.
  • Best weekly sector:Energy, then Technology. Worst sector: Real Estate.
  • Best monthly sector:Basic Materials, then Energy. Worst sector: Consumer Defensive.

Sentiment

  • NAAIM (weekly, neutral between 70 and 90): 52.69
  • VIX (neutral under 20): 21.67
  • Equity Put / Call Ratio (neutral between 0.7 and 1): 0.84
  • CNN Fear & Greed: 46 (Fear)

Breadth

  • Stocks above SMA40 (neutral between 30 and 80): 55.07%
  • Stocks above SMA200 (neutral above 30): 35.97%
  • Number of stocks that increased yesterday by more than 4%: 358
  • Number of stocks that decreased yesterday by more than 4%: 118

Earnings Reports

Noteworthy earnings reports for today:

What to trade today

The idea is to focus on the good sectors/industries, here are the highest possibilities to find working patterns.

Besides the non-triggered yet idea from my last Trading Plans, I will watch today:

Carlisle Companies ($CSL) is forming the handle now and might ignite above the ATH. Stop Loss at yesterday low.

Cloudflare ($NET) might break out if the market is will be positive. 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.

My Investment Experience
Share your investment experience to help other Tigers in their trading!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
4