WEEKLY GAME PLAN June 18, 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 followed through to the downside: The bear market rally ended 3 weeks ago. It started to roll back over 2 weeks ago. And then it followed through this week. If you have a look at how the color coding is overlayed on the NASDAQ, it captures this perfectly. Each of the indexes across time frames is in confirmed and sustained downtrends. What makes it more ominous is that the Russell 2000 and NYSE each closed below prior chart highs from 2020 that should have acted as support. They didn’t. The price action on the daily timeframes has also gotten wider, looser, and more ‘gappy’.
  • New Lows dramatically outpacing new highs: New lows consistently hit high triple digits in the 400-500 ranges while new highs were in the single digits by the end of the week.
  • Distribution rising: Both the S&P 500 and Dow have 4 distribution days in the last 10 days. That’s a distribution cluster and a sign of increased selling. The fact that distribution is occurring not from a rally but while the market is making new lows is a sign that fear is on the rise.
  • There are 23 stocks total on the trade ideas list. 19 of them are short setups and 4 of them are long. The long setups are of low quality and I won’t be taking any of them at this point. I’m keeping them on the list as this is a key determinant of market mood for me (see market mood video below for full conversation)
  • Open Trades: I’m currently short COP. I went short on Friday as it followed through after a gap down.

HOW I’M PLAYING THIS HAND: As of this writing I’m still working through the trade ideas list. There are a few strong short candidates I’m interested in. I’ll update the action list and discord with any ideas I plan to add. This week’s MARKET MOOD video includes insights about my screening process and looking for shorts.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/hqOt7CW6/

WEEKLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/H2aCR9SI/

DAILY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/ru56V3mG/
(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 Developing a Useful TRADING JOURNAL in Google Sheets (also works in Excel) (Mike)

TRADE IDEAS

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

DISCLAIMER: Futures, stocks, and options trading involves a substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses, or can work for you, leading to large gains.
If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor.
All trading strategies are used at your own risk.
Any content on marawealth.com should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.
marawealth.com or Mara Wealth LLC. is not responsible for any losses incurred as a result of using any of our trading strategies. Loss-limiting strategies such as stop-loss orders may not be effective because market conditions or technological issues may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.