Trading Plan: 7 October 2022

Nasdaq (-0.68%)… another indecision day. Noting changed from yesterday’s assessment. Basically, for placing bets, we need a bold move above the EMA21 first and then above the 11500 zone. And of course, watching the support as well. $NASDAQ(.IXIC)$

SP-500 (-1.02%) tested again the EMA21 but was immediately rejected. Generally, this is not a good sign. Probably, investors and traders are waiting for good news in the market… (today we will know the latest jobs number). Watching the marked levels. $S&P 500(.SPX)$

In the news

IMF warns of higher recession risk and darker global outlook.

Peloton slashing 500 more jobs as it races to return to growth. $Peloton Interactive, Inc.(PTON)$

Micron warns of tougher times, plans to cut investments by 30%. $Micron Technology(MU)$

AMD warns of third-quarter revenue shortfall on weaker PC demand, supply chain issues. $AMD(AMD)$

Biden says Putin’s nuclear threat brings the risk of ‘Armageddon’.

Sectors

Best yesterday sector :Energy, then Communication Services. Worst sector: Utilities.
Best weekly sector: Energy, then Basic Materials. Worst sector: Utilities.
Best monthly sector: Energy, then Healthcare. Worst sector: Real Estate.

Sentiment

NAAIM (weekly, neutral between 70 and 90): 38.11
VIX (neutral under 20): 30.52
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.91
CNN Fear & Greed: 27 (Fear)

Breadth

Stocks above SMA40 (neutral between 30 and 80): 27.18%
Stocks above SMA200 (neutral above 30): 24.83%
Number of stocks that increased yesterday by more than 4%: 153
Number of stocks that decreased yesterday by more than 4%: 197
McClellan Oscillator (neutral between -100 and 100): -6.78

Earnings Reports

Noteworthy earnings reports for today:

What to trade today

Trading is about price action, not about news. But when bad news keeps coming in, the earnings outlook is about cuts and even price action is weak, what we can do?!

Wait.

Yes, I noticed good momentum in some individual stocks. It is not bad. But I am looking for the tide. The tide lift all boats, volatility is reduced and risk is lower.

Patience.

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