Nasdaq (+0.90%) continued the rally and gapped up in the morning, but it didn’t succeed to stay above the EMA21. The move is still positive and I look for more money coming in and the price to grind above all the main averages. Of course, watching all the resistance levels (see them marked). If 13200 is taken, we might talk about a solid new uptrend. $NASDAQ(.IXIC)$
SP-500 (+1.14%) had a similar price action and was able to close above the EMA21. The price formed a small W pattern and if taken, it will be a good sign for a possible rally to (at least) main averages. We are still in the bear market, hard to tell if the price is in a new uptrend or just in a visit to its main averages. Watching the marked levels. $S&P 500(.SPX)$
In the news
Americans are buying less at the supermarket.
Microsoft Lays Off Employees After Slowdown in Earnings Growth. $Microsoft(MSFT)$
Apple’s iPad Gets a New Look and iPad Pros Get an M2 Chip Upgrade. $Apple(AAPL)$
Netflix to expand into cloud gaming opens new studio in Southern California. $Netflix(NFLX)$
Sectors
- Best yesterday sector: Industrials, then Utilities. Worst sector: Healthcare.
- Best weekly sector: Financial, then Industrials. Worst sector: Basic Materials.
- Best monthly sector: Energy, then Healthcare. Worst sector: Utilities.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 19.84
- VIX (neutral under 20): 30.50
- Put / Call Ratio (neutral between 0.7 and 1): 0.96
- CNN Fear & Greed: 34 (Fear)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 37.69%
- Stocks above SMA200 (neutral above 30): 27.03%
- Number of stocks that increased yesterday by more than 4%: 394
- Number of stocks that decreased yesterday by more than 4%: 92
- McClellan Oscillator (neutral between -100 and 100): 113.87
Earnings Reports
Goldman shares jump after topping analysts’ expectations on strong bond trading results. United Airlines shares surge on higher profit and strong demand forecast.Adobe stock jumps on estimates for next year as strong dollar cuts into growth. Netflix beat third-quarter expectations on the top and bottom lines.
Tesla TSLA -1.98%↓CEO Elon Musk has made plenty of headlines recently due to his on-again, off-again plans to buy social media platform Twitter TWTR 1.41%↑. Analysts forecast earnings of $1.00 per share for Tesla’s third quarter, down 46.2% from Q3 2021. Revenue is projected to arrive at $22.1 billion (+61.3% YoY). $Tesla Motors(TSLA)$
Other noteworthy earnings reports for today:
What to trade today
After a second green day in all sectors, the market seems to reverse the downtrend and gone higher. Good price action in growth stocks and many setups for a long momentum. The pressure is off now and we can identify the strength in the market.
Do not forget we are in a bear market, everything is possible in no time, so in order to have a successful trading approach, progressive exposure is the key.
I will watch: MPC 1.10%↑DINO 2.13%↑TPL -1.34%↓MUR -2.63%↓VIST 0.17%↑DCP 1.09%↑BTU -1.74%↓DVN -1.58%↓ and if the market is good, I might start adding test(s) position(s).
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