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
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
DISCLAIMER: Futures, stocks, and options trading involves a substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses, or can work for you, leading to large gains. If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor. All trading strategies are used at your own risk. Any content on marawealth.com should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee. marawealth.com or Mara Wealth LLC. is not responsible for any losses incurred as a result of using any of our trading strategies. Loss-limiting strategies such as stop-loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.