WEEKLY GAME PLAN April 23, 2022

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 Summary


Since November 17, the market has been in a ‘RED’ condition in all but 16 days.

The summary below is my interpretation of the data in the ‘Market Mood Log’ above:

  • Downtrends re-established across the board: All 5 of the major indexes put in negative outside reversal days on Thursday that closed near their lows and followed through to the downside on Friday. This also created negative outside reversal weeks across the board and put the monthly charts near their lows.
  • New Lows back to outpacing New Highs: For nearly 2 weeks the NYSE picked up steam as new highs hit triple digits. That came to an abrupt end on Friday. Just over 100 new lows for NYSE and nearly 300 new lows on the NASDAQ reflect the worsening action.
  • Distribution picks back up: There are now 5 distribution days over the last 10 trading days on both S&P 500 and Dow. The combined sell off points to much heavier selling. Previously only the S&P 500 was carrying this distribution cluster (it had done so for about 2 1/2 weeks). It wasn’t until distribution picked up on the Dow as well that the market cracked.
  • There are only 4 stocks total on the trade ideas list. These ‘setups’ are mere consolidations of stocks that have held up. None of them are what I’d consider buyable at the moment. They include PBT, BJ, VAL, and TSLA.
  • Open Trades: I’m back to cash presently.

HOW I’M PLAYING THIS HAND: I’m sitting and waiting in cash until I see high quality setups that interest me. By sitting and waiting, I preserve mental capital as well as physical capital. Gains can be made very quickly when conditions are right. The key is to avoid the times when conditions aren’t right so we can compound gains instead of digging ourselves out of a hole.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Sideways (negative): https://www.tradingview.com/x/tStZDGuk/

WEEKLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/R1NstVuk/

DAILY CHARTS (indexes) Over all Direction = Downtrend: https://www.tradingview.com/x/2Kda8ljH/
(on the lower right is FFTY, the ETF that tracks the IBD 50)



Elite Members go to Elite Training for this week’s lesson High Tight Flags (Stu)


Trade Ideas, setups for the week ahead and group discussion (Mike)

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