WEEKLY GAME PLAN January 16, 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


We’re two weeks into 2021 and all 5 of the major indexes (S&P 500, NADSAQ, Russell 2000, NYSE, and Dow) continued to push into fresh all time highs. However, whereas last week every time frame (monthly, weekly, and daily) were all uptrends, the daily timeframe has shifted to sideways.

This shifting back and forth from uptrend to sideways subtley on the daily timeframe has been the pattern for about 2 months now. It’s indicative of what many refer to as a ‘lockout rally’. Basically that means that its difficult for the bigger players to get in. Fortunately for us, we’re a lot more nimble and can get in and out instantly.

Looking to the # of Stocks making New Highs vs. New Lows on both the NYSE and the NASDAQ (shoutout to Stuart for the pinescript for the NASDAQ), we’re seeing more stocks hitting fresh highs. In fact, looking from left to right it looks like a wave! Seeing more stocks participating in the rally is encouraging to see.

Checkout the charts of the indexes below. What you’ll notice is that despite this uptrend continuing to persist since November, support is still nearby.

DAILY CHARTS (indexes): https://www.tradingview.com/x/caGvanWq/?aff_id=15325&offer_id=10
(on the lower right is the image of stocks hitting new highs vs new lows on the NASDAQ & NYSE)

WEEKLY CHARTS (indexes): https://www.tradingview.com/x/idbwX4XV/?aff_id=15325&offer_id=10

MONTHLY CHARTS (indexes): https://www.tradingview.com/x/CqIq1sbg/?aff_id=15325&offer_id=10

Heading into next week, we have more stocks setting up that hit the focus list. The pullback on Thursday and Friday, while causing some stops to be hit, also helped form new consolidations as well as highlight new leadership.

With about 50% of my portfolio in cash, I’m ready to test several ideas next week should they breakout. However, my last two trades were duds. AMD and TGTX both quickly reversed for losses. This isn’t a problem and losses are expected. However, on the heels of losses, I get back in a bit lighter. My next entries will be for half positions risking 0.5% of capital. When those prove themselves, I’ll begin stepping up my size.

Deep Dive Video

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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.
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