WEEKLY GAME PLAN June 11, 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 rolled over to the downside: The market rolled back over this week. It sold off heavily on Thursday and Friday and are close to making fresh lows. Being that they are closing in on monthly lows, short covering and a relief rally at some point next week is a high probability as well. At best, its shaping of for additional choppy action. On the bearish said, the best case is a strong gap down.
  • New Lows are back to outpacing new highs: New lows high triple digits again and were accelerating as the week progressed. This is generally a sign of momentum picking up to the downside. It makes the chances of continued action to the downside next week more likely.
  • Distribution rising: The S&P 500 picked up 3 more distribution days last week and now has 4 over the last 10 days. That constitutes a cluster and is another sign that increases the chances of more weakness next week.
  • There are only 14 stocks on the trade ideas list. Of the 14, only 5 made the focus list. That said, there was one A lister on it and it scored an 8.23 on the gauntlet. It’s ARCH.
  • Open Trades: None. I moved to cash on Thursday.

HOW I’M PLAYING THIS HAND: When ‘A’ level trades present themselves, I take action on them. Even if the market mood is unfavorable. I’ll still take the trade but with much smaller size. I’ll also manage the risk more aggressively. Looking to raise stops as soon as the technical action allows. If price gets to 1R (or close to it) I’ll also be aggressively raising stops.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/bUB761Fd/

WEEKLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/6FDK9NSD/

DAILY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/aRPr3fEG/
(on the lower right is FFTY, the ETF that tracks the IBD 50)



Elite Members go to Elite Training or click here for Developing a Useful TRADING JOURNAL in Google Sheets (also works in Excel) (Mike)


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

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