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.
MARA List
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Market Summary
MARKET MOOD:
The indexes were hot last week with the S&P 500, NYSE, and Dow each hitting fresh all-time highs. The NASDAQ is an eyelash away from all-time highs and is sitting just below resistance at 14175. The Russell 2000 is the lagging behind but is consolidating tightly around its 50sma.
I think there is a strong chance of a short term pullback and just like in the past, a “pull back” could be something that lasts only for a few days and for a small percentage. If this pullback doesn’t happen immediately, I feel it will likely happen this week or next. Here’s why:
3 of the 5 major indexes hit all time highs but the are also extended to the upside. If they are to take a breather, it makes sense for them to do it while the NASDAQ is just below major resistance. There was a major spike in the number of New Highs on the NYSE on Friday 306. When the NYSE has had large spikes in the number of new highs, it has coincided w/ short term pullbacks occurring w/in a few days to a week or so max. Finally, while there are a good amount of stocks on the Trade Ideas list at 28, none of the ideas making it to the focus list scored above a 7 on the Trade Gauntlet. That tells me that there’s at least a couple of flaws in the bases.
My plan to start the week is to only add a little bit to my positions in TWTR and UBER if they continue to follow through.
Checkout the charts of the indexes below for a closer look at the action.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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