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.
MARKET MOOD: Red
The summary below is my interpretation of the data in the ‘Market Mood Log’ above:
Indexes Pulled back Constructively: The indexes continued pulling back but the character this time around is quite different from what we saw in January and February. The pull back has been relatively orderly across the board. This isn’t to call it bullish…the S&P 500, NASDAQ, and Russell 2000 are each below both their 200sma and 50sma, but its not having in such a way where it seems ready to fall off a cliff either.
BifurcatedNew Lows vs New Highs: The NASDAQ and NYSE are doing nearly the exact opposite of each other. On Friday the NASDAQ had triple digit new lows and the NYSE had triple digit new highs. This was accompanied by mid double digit new highs on NASDAQ and low double digit new lows on NYSE.
Distribution picks back up: The S&P 500 picked up 2 more distribution days last week. It now has 5 over the last 10 days. The Dow also picked up a couple and it has 4 over the last 10 days. These distribution clusters shouldn’t be overlooked but taken within context. They’re different than what we saw previously (as mentioned earlier in relation to the indexes).
There are 55 stocks total on the trade ideas list. Setups continue to grow as does the quality of the setups. 2 ‘A’ level setups to kick things off with OXY and PANW. A fair number of B and C level setups as well.
Open Trades: I have 4 open trades. CVX and NTR are in the green. MUR and X are close to breakeven.
HOW I’M PLAYING THIS HAND: Toward the end of last year it was though we were in a ‘stealth’ bear market. Despite the indexes falling only about 5-10% at that point, many growth stocks had fallen -40% or more. Now with the indexes trading below their 50sma, more quality setups are appearing with many breaking out and making progress. I’m continuing to place orders on only the best setups (gauntlet score of 7 or higher) and putting on position sizes of 6.5% while in this ‘red’ environment.
I’m putting on orders for PANW and OXY. See action list for details.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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