WEEKLY GAME PLAN August 07, 2021

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


The market mood shifted from red to yellow this week and is pretty close to getting into a green condition. Here’s why:

  • Conditions are constructive on the indexes. For the first time in about 4 weeks, the market was not choppy. It was a smooth breakout to the upside nearly across the board (S&P 500, NADSAQ, NYSE, and Dow) across timeframes. The Russell 2000 remains the laggard. Additionally, I’ve started monitoring FFTY (ETF that tracks the IBD 50) and it just broke out of a downtrend.
  • The New Highs vs New Lows list is beginning to stabilize. New Highs on the NASDAQ are pushing toward triple digits and new lows are beginning to dry up. On the NYSE, the list was back to normal for a market at all time highs this week, triple digit new highs and new lows in the teens.
  • Distribution Days are falling off. Neither the S&P nor the Dow picked up any distribution last week. Over the last 10 days there have only been 2 and 3 distribution days respectively which is on the low and manageable side.
  • There are 24 setups this week, up from 17 last week. There were 40 ideas of interest in total. I found 4 setups that had a ‘gut feel’ of 5. I ran these through the gauntlet and only DOCU had a solid score of 7.79. The others had scores in the high 5s. This is a big part of why I’m keeping the market mood in a yellow condition for now.
  • 100% of open trades are positive. I have 3 open swing trades in CROX, NVDA, and ZIP.
  • 5 of my last 10 trades were winners. This is within my historical batting avg about 40%.

I’m planning to start with week with 4 open orders. In total I’m only putting on 1.5% risk. See the ‘Action List’ in the tab above for details.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Overcall Direction = Up: https://www.tradingview.com/x/0urkAZQz/

WEEKLY CHARTS (indexes) Overcall Direction = Up: https://www.tradingview.com/x/UlC8p20r/

DAILY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/WQSjx0xF/
(on the lower right is the image of stocks hitting new highs vs new lows on the NASDAQ & NYSE)

Deep Dive Video


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