WEEKLY GAME PLAN February 26, 2022

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:

It’s often when the world looks like its going to fall apart that the market bottoms and begins to rally… This has happened time and time again with the most recent bottoming happening in March 2020 and POTENTIALLY this past Thursday.

As I reviewed the data this week, I noticed that Thursday’s price action corresponded well with major capitulation lows that often result in a short term rally. Daily volume was the most in over a year and corresponded well with support levels from April/May 2021. Additionally, there was a spike in the number of new lows that also often correlates with a short term relief rally… The thing about rallies is that they all start out as short term and if they ‘get legs’ then they continue to move to the upside.

What makes potential short term rallies intriguing are when other factors favoring a rally begin to appear as well. Much like the first signs of Spring the snow melts, the days get warmer, and buds appear on the trees. Well, in addition to the above, New Highs actually outpaced new lows on the NYSE and there are several solid ‘B’ level setups on this week’s focus list that all make sense given Russia / Ukraine, namely Energy Stocks.

  • Monthly Timeframes Begin Downtrends while Daily Shift to Sideways: The market sure does like to keep things interesting! Should a rally begin here there are plenty of headwinds price will need to get through across time frames. That said, The price/volume action on Thursday and Friday were impressive across the board!
  • New Lows started drying up: After Thursday’s sharp spike down, New Lows tapered off on Friday on the NASDAQ and NYSE. New Highs actually outpaced new lows on the NYSE. This is one of the elements required for the market to turn.
  • Distribution lightened: There were no additional distribution days last week. It could be a sign of fear lessening OR it could be selling pressure lightening briefly so that major players can sell at higher prices. Time will tell.
  • There are 27 stocks total on the trade ideas list. A few less than last week BUT fairly high quality given the market conditions. Last week saw 86% of the trade ideas list finish positive.
  • Open Trades: I’m in cash at the time of this writing.

HOW I’M PLAYING THIS HAND: I’m starting the week with working orders on ERF, SFL, and SBNY. Each for a 1/4 position risking 0.25% of capital. They are the leaders in the Energy and Bank sectors which are leading and rebounding respectively.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/0R5RLNth/

WEEKLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/dx1cWc20/

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



Elite Members go to Elite Training for this week’s lesson Best Trades of 2021 (Mike & Stu)


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.