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WEEKLY GAME PLAN May 07, 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

Since November 17, the market has been in a ‘RED’ condition in all but 16 days.

The summary below is my interpretation of the data in the ‘Market Mood Log’ above:

  • Downtrends continue: Each major index continued to push lower across timeframes with the exception of the Dow which is very close to making new lows but didn’t.
  • New Lows pick up steam vs New Highs: New lows remained in triple digits scoring nearly 500 on the NASDAQ and 250 on NYSE by the end of the week. Meanwhile, new highs remain in the low double digits.
  • Distribution remains elevated at 4 over last 10 trading days: Selling is getting more aggressive and the fact that we’re seeing that aggression when price is near monthly lows is a sign of momentum picking up to the downside.
  • There are only 29 stocks total on the trade ideas list. While breadth increased from last week with more stocks continuing to set up in the Energy and Medical spaces, the quality of those setups are suspect. Many are still wide and loose and require some tightening. We could see such tightening in a few days.
  • Open Trades: I’m presently short XME and long MRK and LLY. Each are small positions. I’m continuing to trade lightly and am only taking the setups which I consider to be the strongest.

HOW I’M PLAYING THIS HAND: I’m not going to add anything to start the week. The only setup close in my opinion is DLTR but it scored a 6.8 on the gauntlet. Not quite good enough for me. However, like I mentioned above, I’ll continue to monitor the market throughout the week and add quality setups (long or short) as they appear.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/uI4O0UO1/

WEEKLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/eDF9yvjS/

DAILY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/eDF9yvjS/
(on the lower right is FFTY, the ETF that tracks the IBD 50)

MARKET MOOD REVIEW

LESSON

Elite Members go to Elite Training 

TRADE IDEAS

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

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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.
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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.