fbpx

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.
MARA List

Market Summary

MARKET MOOD: RED

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)

MARKET MOOD REVIEW

LESSON

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

TRADE IDEAS

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

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.