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.
Best Selling Author – Trading Coach – Creator of the Trade Gauntlet – Founder of MaraWealth.com
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