fbpx

WEEKLY GAME PLAN May 29, 2021

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

From what I’m seeing, the market market mood has finally shifted and is now in a ‘yellow’ condition this week. There’s even a few elements of it shifting toward a ‘green’ condition.

For clarity, here’s what I mean by a ‘yellow’ condition. When any of these conditions appear, the best condition I’ll assign is yellow.

Initial buys are 50/50
Trade ideas are 50/50
Some ‘B’ and ‘A’ setups
New Highs vs New Lows are mixed
Indexes are mixed

Last week I attempted 2 trades: FOXF and ESI and went 1 for 2, batting .500. This helped shift the market mood from red to yellow, but had I selected different trades from the Trade Ideas list last week, I may have batted 1.000. Most of the trade ideas from last week advanced. There were a few absolutely stellar performers on the list such as VRTV, FLL, and RBLX. I shied away from those due to the width of support/resistance on the daily timeframe. This week I’ve adjusted to use tighter stops w/ confluence on the 30min timeframe.

This week has 3 ‘A’ level setups which is the most I’ve seen in a while, and many ‘B’ setups. It got to the point where I’d only run things through the Gauntlet where I had a gut feel of a 5. In case you didn’t already know, ‘gut feel’ of a 5 is my first qualifier for an ‘A’ setup.

The new highs vs new lows list on both the NYSE and NASDAQ are about the same as last week. Single digit and low double digit new lows, new highs in the high double and low triple digits. Seeing it beginning to stabilize here is a positive.

Finally, the major indexes are still moving sideways. If you took a lazy approach and just saw them as ‘uptrend on monthly’, ‘sideways on the weekly and daily’, you may think that it’s the same as last week. However, while still trending sideways, the price action did tighten up on the indexes last week and also pushed higher. Consolidating tighter and near highs brings the indexes closer to breakout levels while simultaneously biding time for the longer term moving averages to play catchup.

For me, its an improving market. I like what I’m seeing heading into next week. But its not a rip roaring bull market like what we had in Nov – Feb. It’s still a time to be selective and for me, I’ll be playing with mid-sized position sizes.

Checkout the charts of the indexes below for a closer look at the action.

MONTHLY CHARTS (indexes) Overcall Direction = Up https://www.tradingview.com/x/X6hdrxPn/?aff_id=15325&offer_id=10

WEEKLY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/PxQZE3G7/?aff_id=15325&offer_id=10

DAILY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/LxBIVRXW/?aff_id=15325&offer_id=10
(on the lower right is the image of stocks hitting new highs vs new lows on the NASDAQ & NYSE)

Deep Dive Video

 

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.