fbpx

WEEKLY GAME PLAN May 28, 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: Yellow

Its been nearly 2 months since our last ‘yellow’ condition but its finally here… The last ones were only about a week long. Things have improved and have upshifted. Be prepared for a downshift. More below.

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

  • Indexes transitioning: The monthly charts are in downtrends. The weekly charts are sideways. And the daily charts are in uptrends. What’s this spell?? TRANSITION! There’s many different outcomes that can be produced from here and sure, all outcomes are always on the table. What’s different here is that the probabilities of outcomes are close to equal. The market is getting close to overhead supply and could get smacked back down. Prices could stabilize or chop around violently. Prices could also continue to push higher as much of the news has been bearish. It’s all on the table and in equal servings.
  • New Highs outpace new lows but barely: For the first time in about 2 months the New Highs outpaced New Lows on the NADSAQ…but 1 (45 highs, 44 lows), but that’s plus everything else was enough to allow the shift from red to yellow. Its also close enough where we should anticipate some chop. Maybe ‘stop and go traffic’ where we switch back and for from red to yellow a few times.
  • Distribution falling: The distribution count is down to 2 over the last 10 days on the Dow and 4 on the S&P 500.
  • There are 43 stocks total on the trade ideas list. This week is saw 1 A and several B level setups. Seeing more setups and higher quality setups has me cautiously optimistic here.
  • Open Trades: Last week I added CNQ, VRTX, and KOS. I’m profitable on all 3 and my stops are at breakeven. I’m still long MRK as well and my stop is above breakeven. I’m about 26% invested with no initial capital risk on the table.

HOW I’M PLAYING THIS HAND: I’m placing orders for VTNR and VAL to start the week and have upped my size to 12.5% per position. If both trigger, I’ll be risking just under 1.5% of my initial capital. Overall (with this 2 new positions plus what I have) I’ll be 50% invested if these trigger. This is exactly how we use progressive exposure. Gaining exposure, increasing size, and risk is still low.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/Fiif6Zs7/

WEEKLY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/EmCatm9d/

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

MARKET MOOD REVIEW

LESSON

Elite Members go to Elite Training or click here for TWO LESSONS THIS WEEK:
MINDSET: Getting Back In The Saddle
Hedging and Risk Management

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.