Trading Plan: 6 October 2022

Nasdaq (-0.25%) gapped down in the morning, almost closed Tuesday’s gap and during the day was able to recover and closed at the highs. The volumes were under-average and the price action might be constructive if the price closes above the EMA21. Watching the marked levels and EMA21 for now. $NASDAQ(.IXIC)$

SP-500 (-0.20%) touched both the high and low of the previous day and stayed between these limits. This “indecision”inside daycandle let the door open for all scenarios. Watching yesterday’s & last week’s low vs. EMA21 and 3900 area. $S&P 500(.SPX)$

In the news

Businesses added 208,000 jobs in September, better than expected, ADP reports.

Euro zone likely to endure recession as downturn deepens.

REI dumps Black Friday — permanently.

OPEC+ to cut oil production by 2 million barrels per day to shore up prices, defying U.S. pressure.

Ford Tripled Its EV Sales Despite a Dip in Total Deliveries.

Sectors

Best yesterday sector: Energy, then Technology. Worst sector: Consumer Real Estate.
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): 12.61
VIX (neutral under 20): 28.55
Equity Put / Call Ratio (neutral between 0.7 and 1): 0.89
CNN Fear & Greed: 30 (Fear)

Breadth

Stocks above SMA40 (neutral between 30 and 80): 27.10%
Stocks above SMA200 (neutral above 30): 24.91%
Number of stocks that increased yesterday by more than 4%: 172
Number of stocks that decreased yesterday by more than 4%: 133
McClellan Oscillator (neutral between -100 and 100): 30.77

Earnings Reports

Noteworthy earnings reports for today: $AngioDynamics(ANGO)$ $ConAgra(CAG)$ $Constellation(STZ)$ $Levi Strauss & Co(LEVI)$ $McCormick(MKC)$

What to trade today

I still do not see good low-risk entries.

Even if there are some interesting setups all these gaps (up or down) reduce the chances for a smooth move. VIX decreased, but is still high and forced the ordinary stocks to make huge bars in both directions.

I keep sitting on my hands.

Follow me to learn more about analysis!!

Technical Analysis

Here is the place for you to discuss & learn about technical analysis.

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.