Trading Plan: 10 May 2022

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Indexes
  1. In the news
  2. Sectors
  3. Sentiment
  4. Breadth
  5. Earnings Reports

Nasdaq (-4.21%) had a brutal red day with very high volumes. This is not easy to trade in this market. The trend is obvious down even if some pullbacks may occur. Next support: 11000 - 10500 area.

SP-500 (-3.20%) closed under its this year's lows and continued down with high volumes. Watching the next support levels. Volatility is growing higher, risk is high.

In the news

Tech giants lost more than $1 trillion in value in the last three trading days.

Bitcoin Price Falls 54% From Its High. 40% of bitcoin investors are now underwater, new data shows.

Russia still faces a high chance of default, despite payment.

Microsoft launches cybersecurity services to help clients fight off ransomware and other attacks.

AT&T, Comcast, Verizon Commit to Low-Income Broadband.

Sectors

  • Best yesterday sector: Consumer Defensive, then Utilities. Worst sector: Energy.
  • Best weekly sector: Utilities, then Energy. Worst sector: Consumer Cyclical.
  • Best monthly sector: Consumer Defensive, then Energy. Worst sector: Consumer Cyclical.

Sentiment

  • NAAIM (weekly, neutral between 70 and 90): 57.18
  • VIX (neutral under 20): 34.75
  • Equity Put / Call Ratio (neutral between 0.7 and 1): 1.27
  • CNN Fear & Greed: 22 (Fear)

Breadth

  • Stocks above SMA40 (neutral between 30 and 80): 19.38%
  • Stocks above SMA200 (neutral above 30): 22.42%
  • Number of stocks that increased yesterday by more than 4%: 57
  • Number of stocks that decreased yesterday by more than 4%: 1733
  • McClellan Oscillator (neutral between -100 and 100): -147.35

Earnings Reports

Palantir growth slows, sending the stock down more than 20%. Upstart plunged 8.06% at close and lost another 44% after hours. Investors sold on the company’s forward guidance.

Occidental Petroleum ($OXY) is expected to report earnings of $2.03 per share in Q1 versus a per-share loss of 15 cents in the year-ago period. Revenue is projected to jump 47.3% to $8.1 billion. The company has been in the limelight in recent weeks following news that Warren Buffett’s Berkshire Hathaway increased its stake in the energy stock.

Noteworthy earnings reports for today:

What to trade today

Since there are no low-risk entries, my plan for today is to watch how the market and companies react in response to fears.

No FOMO.

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.

In order to learn more about trading, you may want to read:

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