To The Moon

Good Afternoon Everyone, I decided to spend some time to examine why do some sectors did well despite FAANG stocks went down with the PPI data released.

All 3 indexes lost more than 1%.

FAANG stocks performance on 16 Feb

FAANGs stocks (Meta, Amazon, Apple, Netflix, Google) are all down, more than 1%. I was wondering which sector stocks are resilient when there is volatility caused by hot inflation data (like last night, PPI data release).

This bring me to look at the Sector -> Industry in Tiger App, by sorting the Top 5 highest percentage change.

Here is a summary of the Top 5 sector/industry.

BK4020 – Communication Equipment +2.36% (16/58 have positive percentage gain)

BK4193 – Diversified Real Estate Activities +2.27% (3/5 have positive percentage gain)

BK4180 – Housewares and Specialities +1.84% (3/4 have positive percentage gain)

BK4185 – Health Care Facilities +1.44% (16/21 have positive percentage gain)

BK4203 – Health Care REITs +1.17% (12/17 have positive percentage gain)

Which stocks to use to analyse

I will be choosing the Top 2 stocks from each sector/industry and use my model to run an adhoc prediction based on my trading plan.

Signal Prediction by Model

Only Comstock (CHCI) has a STRONG BUY signal, let us take a closer look at Comstock (CHCI).

$Comstock(CHCI)$ 16 Feb Close Price: $4.93 it has been trading above VWAP most of the time, only start to go below after 14:00hrs. This happen when interest diminishes as volume almost become non-existent.

It has a high of $5.40 but could not keep this level. Good volume builds up for a nice long steady uptrend.

I would consider looking at this stock tonight (17 Feb).

$Community Health(CYH)$ 16 Feb Close Price: $7.74 has a BUY signal, let us take a look at how the price and volume have traded last night.

There was a nice volume build up during the early hours of trading after PPI was announced. This could show that this stock might be resilient to market volatility caused by the hot inflation data.

BUY volume was much higher than SELL volume. It has a high of S8.01 last night. I would put this in one of my trades tonight.

Sentiment Analysis

I would like to look at how the Sentiment Analysis score is like for these 2 stocks.

CHCI has a rather flat score from 03 Feb to date, and CYH has been getting negative score till 15 Feb, before it turn positive.

So does good sentiment analysis work when there is a sudden announcement of hot data, which might cause volatility?

Or the relationship is inverse, sentiment good for stock might work when there is no volatility?

I will use this to test and examine more for the model to be able to work better for volatility.

Summary (How I would trade these 2 stocks tonight)

I will observe the price and volume movement when market opens, from their 5 mins chart, we can see that once they have a good BUY volume, and price move uptrend, it does not stay sideway.

It will need to be trading above VWAP.

We hope to see a good uptrend when market opens, and it should have a proper uptrend. I do not think we can expect any uptrend gap for these 2 stocks.

@TigerStars appreciate your support! Thanks in advance for your support!

Do share your comments and like this post, if you find it useful in your trading plan or strategy.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Technical Analysis, and there are many other indicators that need to be look at together. (e.g., Price Action, Volume, etc.).