WEEKLY GAME PLAN March 12, 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’ above:

  • Choppy / Bearish Action Continues: The long term monthly charts of the indexes are each in downtrends. The weekly and daily charts are consolidating sideways near potential long term support zones. This creates a bearish bias and choppy action. On the daily timeframes, each of the indexes are finding resistance at or near their 21emas and the NASDSAQ and NYSE are finding resistance at the 10ema.
  • New Lows contract and expand…: This type of action among stocks making new highs/new lows adds to the level of chop. Its a sign that in the short term, the downside is exhausted and needs a breather. It lends to the reason why the market shifted from downtrends on the lower timeframes to sideways but negative.
  • Distribution picks back up: You wouldn’t notice it by looking at the distribution day count but Monday and Tuesday added distribution days while older ones fell off. Make no mistake, distribution is still elevated.
  • There are 23 stocks total on the trade ideas list. Heading into this week, the most interesting area is Transports particularly shipping. A number of stocks in this space are setting up. The one that intrigues me the most is MATX. It is on the action list. Please see the action list above for details.
  • Open Trades: I closed out ERF last week for a 1.4R gain. It had 7 danger signals on Friday (see the closed trades tab for all of the notes on this trade). Additionally, the energy sector seems to be getting toppy with many names in the space having parabolic moves, showing signs of stalling, or having other types of ‘danger’ signals.

HOW I’M PLAYING THIS HAND: MATX scored high on the Trade Gauntlet (7.67) so I’ll be placing an order for this one to kick off the week. I’ll still be trading small, only 0.3% risk, given the Red market condition.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/Ls0j6ij5/

WEEKLY CHARTS (indexes) Over all Direction = Sideways (negative): https://www.tradingview.com/x/K868EgRM/

DAILY CHARTS (indexes) Over all Direction = Sideways (negative): https://www.tradingview.com/x/17nQpvDk/
(on the lower right is FFTY, the ETF that tracks the IBD 50)

MARKET MOOD REVIEW

LESSON

Elite Members go to Elite Training for this week’s lesson Support, Resistance, and Trend Lines (Stu)

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.