WEEKLY GAME PLAN November 20, 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.

Market Summary


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

  • The Indexes are diverging from one another: The NASDAQ hit a fresh all time high. The S&P 500 is trading near highs but has started to move sideways. The Russell 2000, NYSE, and Dow are each in intermediate term consolidations and are arguably in short term down trends.
  • New lows started to outpace new highs: This was the biggest tell. It started last week and bled into this week. On Wednesday new lows on the NASDAQ outpaced new highs. Its odd to see this kind of divergence. It’s not completely uncommon. Just look at Oct 27 and you’ll find a similar divergence. What’s important is that it implies a turning point which could be higher or lower. Just like in a car, when a bend in the road approaches, its time to ease off the gas.
  • The Dow picked up 1 distribution day. Given the action, its kind of remarkable that there aren’t more distribution days. Thursday in particular was a day where weakness was bought as price closed well off its lows.
  • There are 40 stocks total on the trade ideas list. This is the fewest we’ve had in about 6 weeks. Most of the setups I’m finding (while seeing a number of ‘5s’) are in fact ‘B’ level trades.
  • 7 out of 8 of my open trades are in profit. I did some more selling last week, booking gains in DFIN and DAVA. I tried a trade in STER and it stopped me out the next day. Other recent trades in HUBS, DXCM, and KLAC are still near the buy point and haven’t gotten going yet. More reason for general caution.

HOW I’M PLAYING THIS HAND: I’m going to continue adding trades I feel strongly about while playing with a smaller size. I’m starting the week with orders for 1/4 positions in each of the following: DIOD, SEDG, ANET, AMRC

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Uptrend: https://www.tradingview.com/x/p6qDXBHQ/

WEEKLY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/N1IUamjp/

DAILY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/GFGdH33L/
(on the lower right is FFTY, the ETF that tracks the IBD 50)



 Elite Members go to Elite Training for this week’s topic Trading Around Earnings (Mike)


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.