Trading Plan: 21 January 2022

Laurentiu Chisca
3 min readJan 21, 2022

Nasdaq (-1.3%) caught a lot of buyers in the morning and then continued its correction closing much lower with big volumes. There is no real immediate support, caution is required, the downtrend is likely to continue.

SP-500 (-1.1%) is going towards its SMA200, no real support till then. Another distribution day as volumes were important, higher than their average.

Peleton ($PTON) closed in deep red (-16.96%) after temporarily halted bike production due to low demand.

Netflix ($NFLX) expects lousy subscriber growth in Q1 2022 compared to the same period in 2021. Even if they announced that it would raise prices, stocked fell more than 21% in after-hours.

The Federal Reserve released its long-awaited study of a digital dollar, exploring the pros and cons of the much-debated issue and soliciting public comment.

Cryptocurrencies tumble, with bitcoin falling 7% and ether down 8% in the last 24 hours.

The 10-year Treasury Yield continues to trend higher.

Sectors

  • Best yesterday sector: Utilities, then Healthcare. Worst sector: Basic Materials.
  • Best weekly sector: Energy, then Utilities. Worst sector: Consumer Cyclical.
  • Best monthly sector: Energy, then Basic Materials. Worst sector: Healthcare.

Sentiment

  • NAAIM (weekly, neutral between 70 and 90): 74.78 (not updated!)
  • VIX (neutral under 20): 25.59
  • Equity Put / Call Ratio (neutral between 0.7 and 1): 0.99
  • CNN Fear & Greed: 52 (Neutral)

Breadth

  • Stocks above SMA40 (neutral between 30 and 80): 26.88%
  • Stocks above SMA200 (neutral above 30): 31.41%
  • Number of stocks that increased yesterday with more than 4%: 98
  • Number of stocks that decreased yesterday with more than 4%: 450

Noteworthy Earnings Reports / Events for today

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Laurentiu Chisca

Trend Following Trader. Passionate about stock market, curious about new technologies and avid learner.