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Trading Prep DEEP DIVE September 5, 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 ZHw9Mp7D]

Highlights

MARKET MOOD:

‘My oh my how the turn tables have turned!’ (guess the movie) 😉

It didn’t take long for things to dramatically change. We’ve shifted gears and are now predominantly in sideways trends across the major index with a break below last week’s lows confirming fresh downtrends.

On the weekly time-frames each of the major indexes caught support on or around the 10wk line but the character has definitively changed. We shifted from relatively tight and controlled action to wide and loose.

Is this a pullback that should be bought? …time will tell but I’m leaning toward no and here’s why:

From my entire Universe List (formerly what I’d call ‘interesting ideas’) I only found 2 bullish bases, one of which was questionable! That’s kinda like being stuck on the side of the road w/ a flat tire and no gas. I think a best case for the bulls would be continued sideways action and some tightness.

 

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TRADE IDEAS:

Some interesting shorts developing but nothing I’d put on an action list. The action list is for setups that are fully developed. That I’d place orders on right now and then wait for them to trigger. None of them are good enough for that right now.

There are several on the FOCUS LIST where if they tighten up I’d look to short both for swings as well as day trades. 3 of my favorite short ideas on this list are $GSX $GMAB and $REGN They have the cleanest setups and the lowest group ranks.

**See the full list here: https://docs.google.com/spreadsheets/d/114uFcCW6XOVStKg7wMwvSLWqhHfF6BDNRDY9Ry8SQvA/edit?usp=sharing

There are also several ideas I’m targeting for day trades next week.

All of the day trade ideas have a lot of momentum. I’ll look for the setups down on the 5, 3, and 1min charts while simultaneously keeping the higher time frames (30min, 2hr, daily, and weekly) in view. I want to trade in their direction and be aware of the major support levels. Once I identify something I like and execute, I’ll execute 1 at a time. Focus is key.

RESOURCES

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