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 Back In The ‘Chop Zone’: Each of the indexes slipped last week but so far the S&P 500, NYSE, and Dow found their footing around the 50sma, whereas the NASDAQ and Russell 2000 did not. This kind of bifurcation often leads to choppy market conditions.
New Lows outpacing new highs again: For the last couple of weeks, it was as if the market was walking on a tight rope as far as new highs and new lows were concerned. They were close to equally balanced in the low double digits. That all changed on Wednesday when both the NADSAQ and NYSE saw triple digit new lows.
Distribution picks back up: The S&P 500 picked up 2 distribution days last week. It now has 4 over the last 10 days. This is a distribution cluster and is a sign of more aggressive selling.
There are 40 stocks total on the trade ideas list. A larger list than last week but few quality setups from my point of view.
Open Trades: I went to cash briefly last week and then added CVX on Friday. So far it is profitable and I’ve raised my stop, taking about 1/2 the risk off the trade.
HOW I’M PLAYING THIS HAND: Coming into the week I’ll be sitting, waiting, and watching. None of the trade ideas are quite ready yet or of high enough quality. I’ll post in Discord if anything changes.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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