WEEKLY GAME PLAN July 09, 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’ in the spreadsheet above:

  • Indexes shift to sideways positive on daily timeframes: Each index is perched just below their 50smas and all but the NYSE have climbed back above their respective 21emas. A follow through back above the 50sma would put the indexes back into uptrends. That said, from a technical basis, each still have plenty of overhead supply near term. Additionally, the last time the indexes made an attempt at the 50sma they were smacked down hard within about a week. The wedging patterns seen back in early June are quite similar to the wedging patterns being displayed right now.
  • New Lows are drying up…still outpacing new highs though: This also quite similar to what we saw back in early June. An element for the uptrend to get going is indeed a dry up in new lows and an expansion in new highs. Given where the market is at, the potential for chop is high.
  • Distribution dropped: We’re now at 2 distribution days on the S&P 500 and 3 on the Dow over the last 10 days. A lightening of distribution is good for the bulls.
  • There are 39 stocks total on the trade ideas list. Most of these are long ideas. We’re seeing more medical and more Chinese stocks shaping up. There are 3 ideas making their way onto the action list. 2 longs (LI and ECPG) and 1 short (NFG)
  • Open Trades: CHEF triggered long on Tuesday. It squatted and is sitting just below the 40.10 entry point.

HOW I’M PLAYING THIS HAND: I’m continuing to take high quality trades (gauntlet score of 7 or higher) with a size of 6.5% of capital each. I’m keeping my risk tight. ECPG is risking 3.91% (entry to exit) and LI is risking 6.87% (entry to exit). On a high tight flag, anything less than 7% is fairly tight. I’m also looking to short NFG on a continued breakdown from a head and shoulders top.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/qfirzBQ7/

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

DAILY CHARTS (indexes) Over all Direction = Sideways +: https://www.tradingview.com/x/cU5qsNSf/
(on the lower right is FFTY, the ETF that tracks the IBD 50)



Elite Members go to Elite Training or click here for Creating a PlayBook PART 2 (Mike)


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

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