WEEKLY GAME PLAN November 27, 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:

  • Big sell off on Friday: The sell off took the S&P 500 and NASDAQ down to their 10wk lines and prior resistance. It sent the Russell 2000, NYSE, and Dow below their 50smas, 100emas, and the Russell 2000 below its 200sma. Each closed near its lows for the week.
  • New lows continued to outpace new highs: this has been the case for about a week and a half now and the market finally cracked. If this were the only flag, I’d be more inclined to bet on a snapback rally and expect it to follow through.
  • Distribution is still relatively low. There’s only 4 distribution days over the past 25 on both the S&P 500 and Dow. Friday was one heck of a distribution day though! A definitive character change.
  • There are 7 stocks total on the trade ideas list, 6 longs and 1 short. This is the fewest we’ve had all year. That says something. If the shelves are empty, is it a time to buy?
  • I’m in cash. I sold off my swing trades on Monday of last week and have been in cash since.

HOW I’M PLAYING THIS HAND: For now, I’m planning to continue to sit in cash while watching the handful of names on the watch list to see what they do. If I see follow through to the downside and I see additional short setups, I may go short. If I see upside reversals or supportive action, I’ll look closer at bullish ideas. Cash is a position and I don’t mind holding it for now.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Over all Direction = Sideways: https://www.tradingview.com/x/17FODJen/

WEEKLY CHARTS (indexes) Over all Direction = Down: https://www.tradingview.com/x/cGHnICV0/

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



 Elite Members go to Elite Training for this week’s topic Futures Deep Dive into recent trades (Stu)


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

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