WEEKLY GAME PLAN December 04, 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:

  • 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.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/7Qik84Xt/

WEEKLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/hNCQanES/

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



With the market potentially topping out, we spent extra time discussing the market mood, trade ideas, and shorting,


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.