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.
MARA List

Market Summary

MARKET MOOD: Red

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)

MARKET MOOD REVIEW

LESSON

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

TRADE IDEAS

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

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