The Nasdaq (-4.17%) has broken all recent lows and the price appears to be sinking even lower. Watch the 12100 and 10800 levels. Silver is also a position for the swing trader.

The SP-500 (-3.63%) has just reached the critical level (the low of this year) and we could see lower prices. A (small) pullback is likely to occur considering the oversold condition – see the McClellan oscillator at -111.34. Monitoring of areas 4050 and 3850.

In the news

Chip supply issues continue to plague some of the world’s largest companies.

Amazon has bold ambitions to take on SpaceX in satellite internet.

Warren Buffett gives his most detailed explanation as to why he doesn’t believe in bitcoin.

Can Crypto Go Green? Big companies try, but that’s easier said than done.

Sectors

  • Yesterday’s Best Sector: Basic materials, powerful. Worst Sector: Real Estate.
  • Best weekly sector: Energy, then Technology. Worst Sector: Consumer Staples.
  • Best monthly sector: defensive consumer, then Energy. Worst Sector: Communication Services.

Feeling

  • NAAIM (weekly, neutral between 70 and 90): 46.25
  • VIX (neutral under 20): 33.40
  • Equity Put/Call ratio (neutral between 0.7 and 1): 1.33
  • CNN Fear & Greed: 27 (Fear)

Width

  • Stocks above SMA40 (neutral between 30 and 80): 27.03%
  • Stocks above SMA200 (neutral above 30): 28.35%
  • Number of stocks that rose more than 4% yesterday: 127
  • Number of stocks that fell more than 4% yesterday: 479
  • McClellan oscillator (neutral between -100 and 100): -111.34

Revenue reports

Berkshirelower earnings in the first quarter due to slower economic growth. The company’s net profit was $5.46 billion, down more than 53% from $11.71 billion a year earlier.

Notable earnings reports for today:

It’s not an easy market, I don’t recommend trading for beginners. Volatility is above 30 and big moves can ruin bets. If you are trading, you may consider using smaller positions (1/3 – 1/2 normal size) and/or gradual exposure.

Even though the market may continue to decline, there are fewer low risk patterns on the short side. There are also some nice bullish patterns, but generally they don’t work well if the overall market is weak.

Patience is a virtue. Do not pursue the actions of the big movers now, it is too dangerous because their moves did not start from a solid pattern. No FOMO.

Just look at the market today and last week’s actions already featured in previous trading plans.

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

To learn more about trading, you might want to read:

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