WEEKLY GAME PLAN January 23, 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 market is in a real interesting spot right now. All 5 of the major indexes continue to push into new high ground and are in uptrends pretty much across the board (the Dow and NYSE are in short term sideways trends). SOME breakouts from the Trade Ideas list last week were explosive (namely APPS and CMBM) while many others continued to move sideways.

If we’re looking at the stocks by themselves, the consolidations are constructive. There’s a lot of tightening price action. Volume is drying up on many of the right sides of the bases which is a positive sign. And the number of bases we’re seeing now is among the most I’ve seen EVER! We have 39 on the trade ideas list this week.

However, if we compare the stocks to the action on the indexes, there is a subtle hint of divergence. Sideways action in stocks while the indexes grind higher… It’s not problematic just yet but it is something that tends to happen as we near turning points. I’m not at the point where I’m going to sit on my hands but it does have me entering new positions with an extra bit of caution.

Looking to the # of Stocks making New Highs vs. New Lows on both the NYSE and the NASDAQ We’re continuing to see more stocks hitting fresh highs, particularly on the NASDAQ. So far its been a positive sign of many stocks participating in this rally.

Checkout the charts of the indexes below for a closer look at the action.

DAILY CHARTS (indexes): https://www.tradingview.com/x/0WoP00GR/?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/7dnXGCQ3/?aff_id=15325&offer_id=10

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

Heading into next week I’m looking to add smaller positions. For me, that means risking 0.5% of capital on new breakouts instead of the typical 1%. This has to do with both the market starting to feel a little top heavy AND with my recent performance. I like to scale up when I’m winning and scale down when I’m not. My last 2 most recent trades (AMD and TGTX) were both losses. Once I get a fresh win, I’ll start scaling up. I find this to be important for both physical capital as well as mental capital.

Deep Dive Video

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