WEEKLY GAME PLAN December 18, 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 summary below is my interpretation of the data in the ‘Market Mood Log’ above:

  • The chop got choppier: If you take a look at the market mood log over the past week and look at the ‘weekly trend’ section, you’ll see a lot of flip flopping back and forth of the trend. This level of chop is seen more often on the daily than the weekly charts.
  • New Highs vs New Lows remain negative: New lows remained in the triple digits nearly all week and new highs were in the low double digits. Until this changes, it is highly unlikely to see a strong trend resume. Logically it’ll be tough for the indexes to make new highs if the stocks within them are not. Also, if you plot the new highs/new lows indicator on the NASDAQ, you’ll see that every time new lows have outpaced new highs (I went back 10 years when I looked) there wasn’t a single time that this didn’t result in either a downtrend or sideways chop.
  • Distribution picking back up. There have now been 7 distribution days over the past 25 days and 4 within the last 10 days on the S&P 500.
  • There are 27 stocks total on the trade ideas list. 2 of them I feel strongly about. SIMO and HIMX. See the notes on the focus and action lists. Both are high ‘B’ level trades.
  • Open Trades: none I am completely in cash in all of my accounts.

HOW I’M PLAYING THIS HAND: I’m going to place 1/5 size trades on both SIMO and HIMX. I like both of these ideas. The market conditions are rough which is the reason for the extra small size. Putting on a couple of small positions like this (should they trigger) help me to gauge the market’s mood. If they stop me out immediately, its a small less (0.4% capital in total). If they work I’m gaining traction that can be redeployed and used to scale up.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/lqWdcups/

WEEKLY CHARTS (indexes) Over all Direction = Sideways negative: https://www.tradingview.com/x/Uuy0oWAT/

DAILY CHARTS (indexes) Over all Direction = Sideways negative: https://www.tradingview.com/x/WQlJFXfp/
(on the lower right is FFTY, the ETF that tracks the IBD 50)



Elite Members go to Elite Training for this week’s topic Progressive Exposure (Stu).


Trade Ideas, setups for the week ahead and group discussion (Mike)

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