fbpx

Trading Prep DEEP DIVE October 10, 2020

Welcome to the Weekly Game Plan! The 'MARA Lists' are updated in real-time. The 'Market Summary' is provided weekly. The 'Deep Dive Video' is the recording of our weekly Trading Prep DEEP DIVE.

[videopress emkTsIA0]

Highlights

MARKET MOOD:

Lots of breakouts, lots of setups, indexes are a tad extended on the daily timeframe.

There was a LOT of bullishness last week. The indexes closed near their highs for the week. Most stocks breaking out ran. And the number of stocks making new highs not only hit triple digits, at 138 its the most we’ve seen since February!

Taking the new highs ramping up in conjunction with the fact that the indexes are just breaking out and have not yet hit fresh highs is bullish.

Looking at the Universe List, 21 of the roughly 150 stocks on it were setting up. Of those setups, 10 were good enough to go through the Trade Gauntlet (our proprietary stock rating tool that like the name implies, puts trades through the gauntlet!). 4 out of the 10 stocks scored above a 7 which is fantastic! One even scored over an 8, the first time I’m seeing that happen!

Does this have me feeling bullish? Of course! Am I mortgaging my house and going all in?? NEVER! Our job isn’t to take risk. It’s to manage risk! 

Given current market conditions, I’m willing to have between 3-4% of trading capital at risk. 

 

TRADE IDEAS:

Powerful setups all around this week. Our strongest are ZM (scored an 8.6), TSLA (7.65) and RH (7.64).

There were a number of others that scored well on the Trade Gauntlet as well. I should also point out that the Trade Gauntlet is ultimately a reflection of trading beliefs. The higher the score, the more closely aligned the trade is with the beliefs. This serves as a check on ourselves that we’re trading in line with our beliefs and not ‘getting swept up in the moment.’

Here’s the link to this week’s notes: https://docs.google.com/spreadsheets/d/10Bh7n1muVXwaH5GT9hLXEJuNpCik9qbyMe7a8584xZE/edit?usp=sharing

A couple of notes on the sheet:

  1. We’ve added ‘TRADE GAUNTLET NOTES’. This will show you all of the criteria the idea met! Roll over the cell and to see this notes box.
  2. The ‘notes and game plans’ cell was getting too long so I tightened the cell. To see all the info, double click the cell. 

 

RESOURCES

DISCLAIMER: Futures, stocks, and options trading involves a substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses, or can work for you, leading to large gains.
If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor.
All trading strategies are used at your own risk.
Any content on marawealth.com should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.
marawealth.com or Mara Wealth LLC. is not responsible for any losses incurred as a result of using any of our trading strategies. Loss-limiting strategies such as stop-loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.