Trading Plan: 5 April 2022
Nasdaq (+1.9%) reversed back from the EMA10 and cleared the Thursday high. The volumes are decreasing in the last 5 days, this might indicate an acceptance of the price between buyers and sellers. A price above the SMA200 will increase the chances for a bullish run.
SP-500 advanced by 0.81% yesterday from ~SMA200 to the old short-term resistance. A move above last Tuesday's high might indicate a resuming uptrend. ATR is declining and volumes are below average, good values for this handle in forming (notice the cup and handle pattern).
In the news
Twitter shares closed up 28.54% after Elon Musk takes a 9% stake in the social media company.
The Biden administration warned that Russian forces are expected to intensify their military operations in Ukraine.
Porsche Sales Sink 25% in the U.S. After War, Supply Chain, Ship Disaster.
UN climate panel issues blueprint for limiting global warming.
Sectors
- Best yesterday sector: Consumer Cyclical, then Communication Services. Worst sector: Utilities.
- Best weekly sector: Utilities, then Real Estate. Worst sector: Financial.
- Best monthly sector: Consumer Cyclical, then Technology. Worst sector: Consumer Defensive.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 79.72
- VIX (neutral under 20): 18.57
- Equity Put / Call Ratio (neutral between 0.7 and 1): 0.81
- CNN Fear & Greed: 52 (Neutral)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 59.84%
- Stocks above SMA200 (neutral above 30): 38.36%
- Number of stocks that increased yesterday by more than 4%: 474
- Number of stocks that decreased yesterday by more than 4%: 77
Earnings Reports
Noteworthy earnings reports for today:
What to trade today
The market looks good, there are chances to continue the uptrend. Bought on yesterday: $LILM, $MELI, $PANW and $SE.
I will watch the stocks presented in the last few days that didn’t trigger yet.
Other stocks on the watchlist:
Bill ($$(BILL)$) is forming a cup and handle, ATR declining, low volumes. A possible breakout above the black line. Stop Loss: 5%.
Monday ($$(MNDY)$) seems it made a bottoming pattern and now stays above the EMA21 in VCP formation. A breakout above the black line can work. Stop Loss: 5%.
TaskUs ($$(TASK)$) stays well above the EMA21 in a constructive consolidation. If the price goes above the black line, the trade might work. Stop Loss at yesterday's low.
Do your due diligence if or when placing a trade. All ideas stated here are my own and do not represent trading or investment advice.
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