Nasdaq (+2.11%) gapped higher, passed the SMA50 and closed at the EMA21. Below-average volumes supported the move, not necessarily bad in this bear market, but a stronger interest would have been more optimistic. This might be an inflection point and we need to “judge which side has the greatest pulling power” and then “go with that side” (from Richard Wyckoff).
SP-500 (+1.53%) also gapped up and passed both SMA50 and EMA21. The next target seems to be the 4200 area and of course the SMA200. As always, keep an eye on the recent low at the 3900 area as well.
In the news
Uber Eats and Nuro sign a 10-year deal to do robot food delivery in California and Texas.
Tesla could start building a lithium refinery for EV batteries in Texas this year.
Amazon’s CEO has no plans to order corporate staff back to the office.
Deere Invests Billions in Self-Driving Tractors, Smart Crop Sprayers.
Apple’s iPhone Satellite Service Kicks Off Smartphone Space Race.
Bitcoin tops $22,000, hitting its highest in nearly a month ahead of inflation data and Ethereum merge.
Sectors
- Best yesterday sector:Basic Materials, then Energy. Worst sector: Utilities.
- Best weekly sector:Basic Materials, then Consumer Cyclical. Worst sector: Consumer Defensive.
- Best monthly sector:Energy, then Utilities. Worst sector: Technology.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 27.33
- VIX (neutral under 20): 22.79
- Equity Put / Call Ratio (neutral between 0.7 and 1): 0.93
- CNN Fear & Greed: 45 (Neutral)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 46.29%
- Stocks above SMA200 (neutral above 30): 30.71%
- Number of stocks that increased yesterday by more than 4%: 478
- Number of stocks that decreased yesterday by more than 4%: 65
- McClellan Oscillator (neutral between -100 and 100): 24.48
Earnings Reports
For the week:
What to trade today
Market is in a good momentum and many stocks from the watchlist were breaking out and even continued their uptrendCEG 1.41%↑TNK 2.30%↑DGII 4.40%↑, etc. whileORA -0.17%↓NBIX -0.91%↓SHLS -2.99%↓ARRY -1.60%↓STEM -0.74%↓CSIQ -2.32%↓CELH -0.47%↓are still in the game.
Of course, there are other good patterns, but I focus on low-risk entry only.
Here are the Top 20 Industry Groups:
Also, I will watch:
Devon Energy DVN -0.49%↓made mean reversion. Low volumes and declining ATR might signal a potential breakout above the recent highs. Stop Loss: 2.5%.
$S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $Devon(DVN)$ $Uber(UBER)$ $Apple(AAPL)$ $Amazon.com(AMZN)$
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