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
Market Summary
MARKET MOOD: Red
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 confirmed on Monthly Timeframes: On all but the Dow the monthly charts made lower lows. All including the Dow closed at the low of their monthly trading ranges and well below their 12month moving averages. Downtrends continued across the board on weekly and daily time frames with price action getting wider and looser.
New Lows continue outpacing New Highs: On both the NASDAQ and NYSE new highs are in the low double digits while new lows continued to hit a or near -200 on both. On Wednesday and Thursday new lows hit over -400 on NASDAQ.
Distribution remains elevated at 4 over last 10 trading days: Selling is getting more aggressive and the fact that we’re seeing that aggression when price is near monthly lows is a sign of momentum picking up to the downside.
There are only 15 stocks total on the trade ideas list. I’m seeing 15 bullish setups total and none of them are what I’d consider actionable yet. There is one short setup in XME that I am planning to take next week. See action list for details.
Open Trades: I was in cash all of last week.
HOW I’M PLAYING THIS HAND: I’m placing an order to short XME at 55.80. The details are in the action list.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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