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 MOOD: Red
The summary below is my interpretation of the data in the ‘Market Mood Log’ in the spreadsheet above:
Indexes are trending sideways on weekly and daily timeframes: Each of the 5 major indexes are sandwiched between long term support / and intermediate term resistance. Generally this is a recipe for choppy action on the indexes. Getting in close to the ‘danger zones’ (if shorting, close to resistance. If going long, close to support) can work but anticipate churn.
New Lows still outpacing new highs: New lows continued to outpace new highs for the week again, even with the rally.
Distribution picked up slightly: Distribution climbed to 10 and 7 respectively on the S&P500 and Dow of the last 25 trading days. Distribution lessened to 3 and 2 respectively over the last 10 days. Interestingly, a similar dry up in distribution and rally attempted occurred in late May. The rally lasted about a week and a half before getting killed.
There are 29 stocks total on the trade ideas list. The list is split close to evenly between longs and shorts. 13 longs and 16 shorts. There are a few decent B level setups including CHEF, ALKS, and MNST. On the short side NFE has my attention. With setups on both sides as well as the backdrop of the indexes being caught between support/resistance, this should be an interesting ‘tug of war’.
Open Trades: None. I was on vacation last week and am presently in cash.
HOW I’M PLAYING THIS HAND: CHEF is on the action list to start the week. I’ll also be watching NFE closely. Depending on the action in the stock as well as the market, I may take it. I’ll alert you via Discord if I do.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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