Daily Trading Plan - 11/29/2022
The Nasdaq added another distribution day today, bringing the total to 3 and more notably two back-to-back. The index also had back-to-back days of net new lows and closed below the 21 ema. There is GDP, the JOLTS report and Chairman Powell speaking tomorrow which could reignite this rally attempt, however if Powell sounds anything like his last press conference it seems like more trouble ahead and a date with at least the downward sloping 50 day moving average below.
The SPX is back in no mans land between the 61.8% and 50% retracement levels. The SPX avoided a distribution day by closing the day down only .16%, just below the .20% threshold. The 8 ema has now turned down and acts as resistance. This could very likely retest the 21 ema about 1% lower.
The dollar continued to bounce reclaiming the 8 ema after staging an upside reversal at the 200-day moving average yesterday. Yields moved higher across the board. The 2-year looks to have a pivotal test with the downtrend line tomorrow as the 10-year reclaimed its 8 ema today.  The VIX attempted to rally above yesterday’s high, but ultimately couldn’t hold on and closed lower.
Current Holdings: ANET 0.00%↑ ENPH 0.00%↑ GFS 0.00%↑ LULU 0.00%↑ ON 0.00%↑ PODD 0.00%↑
After waiting patiently, GFS finally offered my opportunity to initiate a position on a pullback to the 21 ema. That was my only trade of the day. ENPH continues to disappoint as it closed below the pivot again and seems destined to touch its own 21 ema. ANET, LULU, ON managed to eek out gains as PODD has made no progress from my purchase.
With Powell tomorrow, PCE Thursday and Unemployment on Friday and back-to-back distribution days I will be playing defense here. I will be raising stops to breakeven on ANET, LULU, ON which all currently show a profit. ENPH, PODD and GFS I will honor my original stops. This leaves my overall capital with very little risk. I do not plan on adding any additional risk before PCE on Thursday.
Thanks for reading! If you enjoyed this article please help support my work by doing the following:
Follow me on Twitter @amphtrading
Share this post using the button below
The content presented is for informational and educational purposes only. Nothing contained in this newsletter should be construed as financial advice or a recommendation to buy or sell any security. Please do your own due diligence or contact a licensed financial advisor as participating in the financial markets involves risk.