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 MOOD: Red
The summary below is my interpretation of the data in the ‘Market Mood Log’ above:
Potential Turn Coming in the Indexes: The S&P 500 had a ‘follow through day’ on Wednesday 3/16. The other indexes followed suit with each trading sideways and below major points of potential resistance. For example the S&P 500, NYSE, and Dow are just below their 200sma. The NASDAQ is just below its 50sma. And the Russell 2000 is closing in on resistance from February 10.
New Highs starting to outpace new lows: The tide began to shift mid-week with new lows drying up and new highs beginning to re-emerge. They have a long way to go (both are in low double digits) but this is a start and distinct change from what we’ve seen the last several weeks. This needs to sustain itself to become meaningful.
Distribution drying up on Dow: The Dow has only had 2 distribution days in the last 10 days. The S&P 500 has 5 over the last 10 days but up to 4 of them are set to fall off the count next week.
There are 61 stocks total on the trade ideas list. This is the most encouraging part and what has me thinking the market is getting ready to make the turn. This is the most setups we’ve seen since January. HOWEVER, they’re still mostly ‘B’ and ‘C’ level setups at this point. Many have come straight off the lows (similar to the indexes) and need a day or two pullback at least to setup proper entries.
Open Trades: I have 3 open trades. MATX, RS, and UNF. MATX is already profitable with 2 scale outs. RS and UNF are both hovering around the entry points.
HOW I’M PLAYING THIS HAND: With so many stocks on the Trade Ideas list, I’m anticipating a busy week. However, to start things off, I’ll be sticking with my open trades. Despite having 61 ideas on the list, none of them are what I’d consider ‘A’ level quality. SAIA came close with a gauntlet score of 7.18 but even with that solid of a score, I’d prefer to have my open trades in RS and UNH prove themselves before adding a high ‘B’ level trade. If the market digests its strong move off the lows well last week, I could be adding trades as soon as Tuesday. Check Discord for additional updates.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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