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 rallied off their lows: The indexes rallied off their lows this week and created uptrends on the daily timeframes, sideways trends on the weekly, and downtrends on the monthly. What’s this spell??? CHOP! It’s a transitional phase for both sides. The indexes generally paused near the 21ema, a natural spot to do so. If they breakthrough, they have a down trending 50sma to contend with. If the rally fails immediately, look for lower lows. Also, look at the weekly timeframes. The rally occurring here should come as no huge surprise. The S&P 500, NASDAQ, and Dow were each at major multi-year structural levels.
New Lows still outpacing new highs: New lows continued to outpace new highs for the week, even with the rally.
Distribution declining: The Dow is down to 2 distribution days over the past 10 while the S&P 500 still has 4. Its just enough of a lightening to allow for a rally. If we look at both the S&P 500 and the Dow, both started encountering distribution near the 50sma during its last rally in early June.
There are 27 stocks total on the trade ideas list. 24 of them or short ideas. The 3 longs are only in the neighborhood. It would be exceedingly rare for a sustainable rally to occur with so few setups.
Open Trades: I closed out COP on Thursday, locking in gains. I am now fully cash.
HOW I’M PLAYING THIS HAND: I will be on vacation next week and am not taking any trades while I’m away. There are, however, a number of very interesting looking short ideas. Please see the ‘Trade Ideas’ list.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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