Nasdaq (+2.03%) ‘ignored’ the yesterday bar and went higher on average volumes. This area is very tricky as all the directions are possible: higher and building the handle or lower to test the lows. Watching the SMA50 and Tuesday low for now.
SP-500 (+1.12%) closed above both yesterday's high and SMA50. Watching SMA200 and Tuesday low for now. No clear direction.
In the news
Chinese carriers are shipping more empty containers than full ones out of U.S. West Coast ports.
Bitcoin bounced 2.86% for the second day of gains. Ethereum expanded by 2.55%.
Google to Invest $9.5 Billion in U.S. Offices, Data Centers.
Americans rush to buy plane tickets despite rising prices.
Inflation “has likely peaked,” said Bank of America analysts on Tuesday.
Sectors
- Best yesterday sector:Consumer Cyclical, then Technology. Worst sector: Utilities.
- Best weekly sector:Energy, then Basic Materials. Worst sector: Communication Services.
- Best monthly sector:Energy, then Basic Materials. Worst sector: Industrials.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 83.41
- VIX (neutral under 20): 21.82
- Equity Put / Call Ratio (neutral between 0.7 and 1): 0.91
- CNN Fear & Greed: 46 (Neutral)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 51.32%
- Stocks above SMA200 (neutral above 30): 36.08%
- Number of stocks that increased yesterday by more than 4%: 461
- Number of stocks that decreased yesterday by more than 4%: 61
- McClellan Oscillator (neutral between -100 and 100): 22.18
Earnings Reports
UnitedHealth Group($UNH) has shown resilience during a rough start to 2022 for the broader market. Analysts are targeting earnings of $5.37 per share (+1.1% YoY) and revenue of $78.8 billion, a 12.2% improvement over the previous year.
Other noteworthy earnings reports for today:
What to trade today
When the market turns positive, you can notice the stronger stocks emerging (again). Technology cannot stay down for long, it is the motor of growth. Or at least this is the way it acted in the past. Energy and Basic Materials may continue to be strong based on both price action and the political environment.
Palo Alto ($PANW) is one of the leaders in Technology. An advance above the highs might work. Stop Loss at yesterday's low.
APA Corporation ($APA) acted very well during these weeks. Now it can be bought above the highs with a Stop Loss at yesterday’s low.
Occidental Petro ($OXY) is consolidating constructively above the EMA21. If the price goes above the black line, the trade might work. Stop Loss at 5%.
US Steel ($X) stays well on the EMA21. It might pass the black line. Stop Loss at yesterday low.
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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