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:
Choppy Action Across The Board: When you look across the indexes and across each of the time frames, particularly in the Market Mood Log, you’ll notice the frequent transition from sideways to downtrend and back to sideways, then sideways plus… These gyrations tend to happen more frequently on the daily but we’re seeing them on the weekly and even the monthly. Not only that, but the S&P 500 and Dow have rebounded nearly back to highs while simultaneously the Russell 2000 is below the 200sma. This combination across the board adds to the level of chop.
New Highs vs New Lows is Choppy too!: On Tuesday and Wednesday New Highs outpaced new lows and there was a massive dry up in new lows on the NADSAQ. From -282 down to -11 on Tuesday. To end the week new lows are outpacing new highs but both are in the low to mid double digits. Again, choppy action…
Less distribution the last 10 days. There have only been 2 distribution days on the S&P 500 and 1 on the Dow in the last 10 days. 2 distribution days are set to come off the S&P 500 at the beginning of next week.
There are 37 stocks total on the trade ideas list, mostly B & Cs. There are 2 strong looking setups to kick things off. They are in DDS (bearish wedge), and CIEN (breakaway gap). From a ‘market mood’ perspective, there isn’t much quality on the shelves right now.
Open Trades: 0 for 2 right now. I started positions in EVA and HAYW. Both squatting so far.
HOW I’M PLAYING THIS HAND: I’m going to place an order for a small 1/4 position in CIEN to kick things off. If I gain traction to the upside and more setups develop, I may look to add. Otherwise, I’m taking things very slowly.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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