WEEKLY GAME PLAN January 02, 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:

  • Constructive action on the indexes: handles have formed on the daily time frames of each of the major indexes. The price action has tightened up as well and has shown a positive shift in character.
  • New Highs vs New Lows…the one trouble spot: New lows continue to outpace new highs on the NASDAQ. This is the one major area of concern and the reason why I’ve opted keep the market in a ‘red’ condition for now.
  • Distribution continuing to fall off. There has only been 1 distribution day in the last 10 days. Another sign of improvement.
  • There are 56 stocks total on the trade ideas list. Breadth is expanding. The majority of setups are in the B and C area.
  • Open Trades: I’m in cash right now.

HOW I’M PLAYING THIS HAND: To start things off this week I’m going to sit, wait, and watch. Reason being, I’ve got covid and its hitting me pretty hard. Even though there’s a nice uptick in the level of trade opportunities (56 this week vs 36 last week) and some quality looking setups, I have a policy of not starting new positions when I’m sick. As I always say ‘the market is an infinite stream of opportunity’. If I’m in a compromised state like this, I’m doing myself more harm than good by putting on trades that I may not be able to manage properly.

Given the increasing breadth and quality of the setups (along with every other element pointing to a yellow condition), there is an argument to be made to overlook the new highs v new lows on the NASDAQ and to keep the ‘yellow’ condition going. I think the tie breaker could be personal performance. How have you performed over your last 3 trades? 5 trades?

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/yY9zps3l/

WEEKLY CHARTS (indexes) Over all Direction = up: https://www.tradingview.com/x/x5vP1xBn/

DAILY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/3IAdCIg7/
(on the lower right is FFTY, the ETF that tracks the IBD 50)



Utilizing the 30min timeframe for tighter entries (discussed at the beginning of the trade ideas segment and integrated throughout)


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

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