Nasdaq (-1.04%) continued its downtrend and close under the June support with under-average volumes. The price tried to go even lower during the day, but the buyers were stronger and pushed back the price (see yesterday’s bottoming tail). Next targets? Probably the psychological number 10.000. This area has some history marks: minor support from the pre-COVID highs or pivots after the V-shape reversal. $NASDAQ(.IXIC)$
SP-500 (-0.75%) tested last week’s low and snapped back, but closed below the previous’s day close. This price action is tricky now because it can be associated with both bullish and bearish scenarios: a reversal from a double-bottom pattern vs. a bear flag consolidation and continuing the downtrend. Watching the marked levels. $S&P 500(.SPX)$
In the news
HP, Lenovo and Dell see PC shipments continue to decline in Q3, while Apple bucks the trend.
‘This is serious. Stocks could fall another easy 20% and next drop will be much more painful than the first’: JPMorgan’s Jamie Dimon warns the U.S. likely to tip into recession in 6 to 9 months.
Amazon.com to invest over 1 billion euros in European electric van and truck fleet. $Amazon.com(AMZN)$
Tesla, BYD Break China Delivery Records as EV Rivalry Goes Global.
Sectors
- Best yesterday sector: Consumer Defensive, then Industrials. Worst sector: Energy.
- Best weekly sector: Energy, then Industrials. Worst sector: Real Estate.
- Best monthly sector: Energy, then Healthcare. Worst sector: Real Estate.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 38.11
- VIX (neutral under 20): 32.45
- Equity Put / Call Ratio (neutral between 0.7 and 1): 1.05
- CNN Fear & Greed: 20 (Extreme Fear)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 21.16%
- Stocks above SMA200 (neutral above 30): 22.34%
- Number of stocks that increased yesterday by more than 4%: 91
- Number of stocks that decreased yesterday by more than 4%: 292
- McClellan Oscillator (neutral between -100 and 100): -78.82
Earnings Reports
Noteworthy earnings reports for today: $AZZ Inc(AZZ)$ $Pinnacle Financial Partners(PNFP)$
And a view for this week:
What to trade today
Market is at an inflection point, everything is equally possible. Instead of looking for small gains, I would rather prefer watching the stocks that are still at the highs and resisting going down as the market. Identifying leaders pays better than being in and out in days. Of course, my two cents.
Here are the top 20 industries:
In a good market, I would have taken the CEG -0.20%↓bet. A trade with a beautiful advance this summer, a constructive consolidation, SMA50 very close and a mean reversion with less than 2% risk is always a good bet. $Constellation Energy Corp(CEG)$
What I like: CCRN 2.02%↑,BTU 0.78%↑,TPL 0.29%↑,INSW -0.38%↓,WOLF -1.82%↓,VIST -3.64%↓,DEN 7.37%↑,FREY -0.84%↓,HLIT 1.97%↑,NBIX -0.86%↓,MPC -1.20%↓,PRTA -1.38%↓,REGN 1.47%↑,RXDX -3.05%↓,RYTM -1.65%↓,SGML 2.91%↑,TNK -3.97%↓. These are not setups.
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