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:
Major cracks showing across the board: Each of the major indexes close below the 50sma. Each are trending below their own 5emas. The price action has gotten wider and looser. Each index is near a long term level of potential support. This may bring some dip buyers and cause some chop. However, Each index has much to prove to make a buyable rally including climbing and getting back above their moving averages and seeing the short term averages at least begin to flatten out (rather than sloping down like they are now). To top things off, both the daily and weekly charts are showing downtrends across the board. The monthly charts are sideways and I consider the Russell 2000 as S- as it undercut the last 3 months lows and is below the 12month moving average.
New lows continued to outpace new highs: its now 2.5 weeks and new lows are topping -250 regularly. New highs are in the low single digits.
Distribution picking up. There’s 5 distribution days over the past 25 on both the S&P 500 and 3 over the past 10 days. Not only that, the character has changed to far wider and looser action accompanies by significantly heavier volume.
There are 37 stocks total on the trade ideas list, evenly split long/short. I’m starting to see more tradeable setups but the vast majority are ‘C’ level quality.
I’m still in cash.
HOW I’M PLAYING THIS HAND: I’m going to keep sitting in cash until better quality setups appear.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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