Trading Plan: 18 October 2022

Nasdaq (+3.43%) gapped up in the morning and succeeded to stay at the highs. The close was strong with average volumes. The inside day might suggest a sideway consolidation at these levels. Watching Friday’s high vs. Thursday's low. $NASDAQ(.IXIC)$

SP-500 (+2.65%) also had a strong day, gapped up and continued its uptrend for the day. Good volumes. The next step is to take the EMA21 / Friday’s high… with volumes! Watching the marked levels as well. $S&P 500(.SPX)$

In the news

Microsoft confirms job cuts after calling for growth to slow. $Microsoft(MSFT)$

Apple freezes plans to use China’s YMTC chips. $Apple(AAPL)$

Apple is bringing Spatial Audio to cars, starting with Mercedes-Benz.

Goldman Sachs sees deeper UK recession after-tax U-turn.

Dozens of LNG-laden ships queue off Europe’s coasts unable to unload.

“Bitcoin as safe haven” theory crumbles in face of persisting inflation.

Sectors

Best yesterday sector: Consumer Cyclical, then Real Estate. Worst sector: Consumer Defensive.
Best weekly sector: Healthcare, then Real Estate. 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): 31.37
Put / Call Ratio (neutral between 0.7 and 1): 0.97
CNN Fear & Greed: 29 (Fear)

Breadth

Stocks above SMA40 (neutral between 30 and 80): 31.10%
Stocks above SMA200 (neutral above 30): 21.28%
Number of stocks that increased yesterday by more than 4%: 862
Number of stocks that decreased yesterday by more than 4%: 82
McClellan Oscillator (neutral between -100 and 100): 50.83

Earnings Reports

Bank of America tops estimates on better-than-expected bond trading and higher interest rates.

Netflix NFLX 4.52%↑will report its third-quarter earnings after today’s close. Consensus estimates are for NFLX to report third-quarter earnings of $2.13 per share, down 33.2% year-over-year (YoY). Revenue is projected to land at $7.8 billion, up 4.8% over the year-ago figure. $Netflix(NFLX)$

Other noteworthy earnings reports for today:

What to trade today

Good breath, but still a volatile environment and risky. This price action might be the first step when a new trend starts, but I would like to see more power.

I will watch DGII 3.88%↑,CEG 2.97%↑, VIST 0.61%↑and DINO -2.07%↓over yesterday’s high.

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