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 Re-established: The weekly trends on each of the indexes pushed higher while closing near their weekly lows. This created sideways action with a negative bias. On the daily timeframes, the NASDAQ and Russell 2000 broke short term support areas and established short term downtrends.
New Lows picking up again: The NASDAQ ended the week with -214 new lows. The NYSE began hitting triple digit new lows as well.
Distribution remains elevated on the Dow: The Dow has had a distribution cluster (4 or more distribution days over a rolling 10 day period) for the past 2 weeks. Every time a distribution day has fallen off, another has been added.
There are 38 stocks total on the trade ideas list. Trade ideas are picking up though not much quality… I didn’t see many short-able patterns either in the ETFs I track. Many have already broken down, are extended, with no clear setup. On the flip side, energy, metals, and agriculture continued to rip higher last week and the majority of setups last week produced positive returns.
Open Trades: I bought ERF last week. It hit my first scale out and my stop is above breakeven. See ‘open trades’ log for details.
HOW I’M PLAYING THIS HAND: I’m not adding any new trades to begin the week. 3 ideas looked decent (MPC, CNC, and TSCO) but each scored below a 7 on the gauntlet. Given a choppy, weak market, I’m looking for 7s or better.
DAILY CHARTS (indexes) Over all Direction = Sideways (negative): https://www.tradingview.com/x/KKgzPQBm/ (on the lower right is FFTY, the ETF that tracks the IBD 50)
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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