Trading Plan: 6 May 2022

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Indexes
  1. In the news
  2. Sectors
  3. Sentiment
  4. Breadth
  5. Earnings Reports
  6. Experts - Hedge Fund and Trading Strategy - DDIChat

Nasdaq (-4.99%) had one of its weakest day ever closing back to the Monday lows. In this case, having a volume lower than yesterday is not necessarily a good sign. It seems that investors remembered that besides the anticipated hike, there were hints about recession in Wednesday's FED meeting. Watching the 12100 level for now.

SP-500 (-3.56%) had also a red day. Bouncing from the support is generally a good sign, but hard to evaluate the status of the market. These recently wide bars together with VIX above 30 show us that the waves are way too high for an ordinary surfer.

In the news

‘We see a big recession in the making’: Top CEOs are fearing the worst in Europe.

Bitcoin drops 8% as $126 billion is wiped off the cryptocurrency market.

Elon Musk is expected to serve as temporary Twitter CEO after the deal closes.

China’s Covid lockdowns are hitting more than just Shanghai and Beijing.

Digital-Ad Giants Google, Facebook, Amazon Come Down From Pandemic Highs.

Apple’s Not-So-Secret Plan to Take Another Gigantic Bite of the Microchip Market.

Sectors

  • Best yesterday sector: Utilities, then Energy. Worst sector: Consumer Cyclical.
  • Best weekly sector: Energy, then Basic Materials. Worst sector: Real Estate.
  • Best monthly sector: Energy, then Consumer Defensive. Worst sector: Communication Services.

Sentiment

  • NAAIM (weekly, neutral between 70 and 90): 57.18
  • VIX (neutral under 20): 31.20
  • Equity Put / Call Ratio (neutral between 0.7 and 1): 1.14
  • CNN Fear & Greed: 31 (Fear)

Breadth

  • Stocks above SMA40 (neutral between 30 and 80): 29.47%
  • Stocks above SMA200 (neutral above 30): 27.75%
  • Number of stocks that increased yesterday by more than 4%: 74
  • Number of stocks that decreased yesterday by more than 4%: 908
  • McClellan Oscillator (neutral between -100 and 100): -45.98

Earnings Reports

Nikola stock jumps as EV truck maker reports start to production and surprise Q1 revenue. Shopify stock sinks 15% after earnings miss, $2.1 billion acquisition of logistics start-up. Grid Dynamics ($GDYN) came out with quarterly earnings of $0.10 per share. This compares to earnings of $0.05 per share a year ago. This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.10, delivering a surprise of 11.11%.

Exceptional RS, huge bar aftermarket

DraftKings stock is down nearly 50% for the year to date. $DKNG’s first-quarter earnings report — due out ahead of the May 6 open — analysts, on average, are looking for $414.4 million in revenue (+32.7% YoY) and a loss of $1.16 per share, wider than the 87 cents-per-share loss the company incurred in the year-ago period.

Other noteworthy earnings reports for today:

What to trade today

Big waves, rocky waters, whirlpools, sharks…who wants a swim?!

Here’s the yesterday’s snapshot:

Many stocks closed in big red and it is very difficult to trade them now as there is no low-risk entry.

We will see big moves, but being patient is healthy.

No FOMO. Wait for the right conditions.

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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