WEEKLY GAME PLAN February 5, 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:

Last week the market shifted from red to yellow and back to red again within the span of 4 days. That’s about as quick as I’ve seen it and speaks to the level of choppiness in the market right now. How’d that happen? More on that below. However, generally speaking, this is the type of environment swing traders like myself prefer to tread lightly in or stay out of completely. Compounding returns is just as much about holding onto gains as it is about making them. Part of holding onto gains is knowing when its best to trade and not digging ourselves into a hole. Here’s a detailed explanation of exactly what I’m seeing:

  • Indices rallied and are now caught between support and resistance: This happened across the board on weekly and daily timeframes of each index. Take a look at the linked annotated charts below to see the marked up levels. When this happens, it gives the opportunity for new setups (both bullish and bearish) to develop as the tug of war ensues.
  • New Highs BRIEFLY outpaced new lows: This is a large part of what switched the mood from red to yellow and back to red again. There has never been a sustainable uptrend (sustainable being more than a 2-3 weeks) without this new highs vs new lows ratio favoring new highs. Back and forth action, ultimately favoring new lows is reason enough to play it safe.
  • Distribution picked up a little: The S&P 500 saw back to back distribution days Thursday and Friday. Interesting, both closed high in their trading ranges and could be interpreted as subtle accumulation days. Which is it? Time will tell. However, the lack of clarity gives raises the likelihood of continued near term chop.
  • There are 25 stocks total on the trade ideas list. A slight pick up from the 20 stocks on the trade ideas list last week but 25 is still relatively low. Additionally, the quality isn’t there yet. There are only ‘C’ level setups to kick off the week. See additional notes in the focus list above.
  • Open Trades: I’m still holding BROS and its performing very well so far, up nearly +10% from my entry. It’s my lone position.

HOW I’M PLAYING THIS HAND: For now I’m still long BROS, have locked in profits, and am free rolling the rest of the trade. With only a handful of decent looking setups in energy, banks, and reits and ALL of them scoring low on the gauntlet, I’ll be sitting and waiting.

Checkout the charts of the indexes below.

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

WEEKLY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/NV2HT611/

DAILY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/k1pYQdYt/
(on the lower right is FFTY, the ETF that tracks the IBD 50)



Elite Members go to Elite Training for this week’s lesson The Ultimate Trend Trading System (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.