Trading Prep DEEP DIVE October 24, 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.

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Sideways action continued. Choppiness continued. Interesting & constructive setups in stocks continued to form…
What’s needed now?? …PATIENCE!
Most trade ideas have broken out, given decent gains the last few weeks, and have come back in. In choppy sideways markets, the best course of action I’ve found is to sit and wait. Test ideas using smaller position sizes. Once the market begins to breakout again and trend higher, setups will be plentiful. There’s no ‘missing the boat’ because setups fuel uptrends. 
Does this choppiness remain until after the election? Seems logical, but at the same time, we need to be ready for anything. As has been said by many a trading legend ‘trade what’s happenning, not what you think is going to happen.’   

OVERALL DIRECTION: SSS (sideways on monthly, weekly, and daily time frames)

NEW HIGHS vs NEW LOWS: Even while the market consolidates the number of stocks making new highs relative to what we saw for most of September is impressive. Take a look at the daily charts linked below. New highs are following the price action and leading the price action slightly. 




PORTFOLIO MANAGEMENT: I’m looking to add SHOP and YETI at half positions next week IF they break out. Given the choppiness the past week and the churn I’ve seen in the portfolio, I’m now going to ease my way back in.



There’s a few highly rated stocks this week. Given the choppiness of the market environment I’m electing to do half size positions (risking 0.5% of capital) on 2 of them. SHOP and YETI

Here’s the link to this week’s notes: https://docs.google.com/spreadsheets/d/1Gs5hGeFJTqFv_FC31Mv6q7EO5fWty_olj8XHynLMVQE/edit?usp=sharing

A couple of notes on the sheet:

  1. There’s a new tab for ‘Swing Trade Earnings’. These are ones that are setting up that have earnings around the corner. (SHOP had a lot going for it which is why it’s on my action list this week).
  2. 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.
  3. The ‘notes and game plans’ cell was getting too long so I tightened the cell. To see all the info, double click the cell. 



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