Trading Plan: March 8, 2022. Market Review and Trading Ideas | by Laurentiu Chisca | March 2022

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Market assessment and trading ideas

Market overview

Wide red bar for the Nasdaq (-3.62%) yesterday with above average volumes. We could see a short bounce, but the general trend can continue to decline until the next supports: 12,400 and 12,000.

SP-500 (-2.95%) down on large volumes. Watch the February lows and the 4000 area. It will take time to repair the damage and it will surely take weeks (or months?) to get back to the January or February highs. Waiting to form a bottom and then a solid base.

In the news

The Russian invasion threatens the world’s food supply.

Some tech stocks are down 75% from their highs a year ago.

Mandiant ($MNDT) climbs 16% on report Google is in talks to acquire the company.

European markets are set to fall further as Russian-Ukrainian fears persist.

Sectors

  • Yesterday’s Best Sector: Energy, then Utilities. Worst sector: Cyclical consumption.
  • Best weekly sector: Energy, then Utilities. Worst sector: Cyclical consumption.
  • Best monthly sector: Energy, then Base Materials. Worst sector: Cyclical consumption.

Feeling

  • NAAIM (weekly, neutral between 70 and 90): 30:30
  • VIX (neutral under 20): 36,456
  • Equity Put/Call ratio (neutral between 0.7 and 1): 0.92
  • CNN Fear & Greed: 13 (Extreme Fear)

Width

  • Actions above SMA40 (neutral between 30 and 80): 31.20%
  • Stocks above SMA200 (neutral above 30): 27.78%
  • Number of stocks that rose more than 4% yesterday: 169
  • Number of shares that fell more than 4% yesterday: 1012

Revenue reports

Dick Sporting Goods ($DKS) will release its fourth quarter results before the March 9 open. Analysts are forecasting fourth-quarter earnings per share of $3.43 for Dick’s Sporting Goods, 41.2% higher than the company reported a year ago. Revenue, meanwhile, is expected to reach $3.3 billion, +5.4% year-on-year (YoY).

Notable earnings reports for today:

Volatility is high for the swing trader and it is very difficult to find a good low risk entry on the daily chart. Good price action in some industries (oils, materials, fertilizers, etc.) but very broad and very risky now.

If you take yesterday’s trades from the trading plan, please consider moving the Stop Loss to the break-even point to protect the gains.

Amplitude ($AMPL) is about to break down. If the price below the black line and volumes come in, it can be shorted with Stop Loss at yesterday’s high.

Globel-E Online ($GLBE) might drop depending on this configuration. Short below black line, Stop Loss at yesterday’s high.

Affirm ($AFRM): The price was rejected by the falling EMA21. If below the black line, it may be shorted. Yesterday’s High Stop Loss.

Upstart ($UPST) could drop if the “higher lows trend” is broken. Stop Loss at max. 4–5%

Exercise due diligence if or when placing a trade. All ideas expressed here are my own and do not represent trading or investment advice.

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