WEEKLY GAME PLAN October 2, 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: RED

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

  • Major indexes are like a dark cloud w/ a silver lining: From my perspective I wouldn’t call the action we saw on the indexes last week choppy. It’s more of what I’d consider a “dark cloud with a silver lining.” If you look at the Market Mood Log, you’ll see that while the trend was predominantly sideways to down, you didn’t have the back and forth of sideways one day, downtrend the next, then back to sideways / up. That’s what I consider choppy. Last week’s action for the most part was smooth from my vantage point and given that most setups fell apart before breaking out, I was in cash. The ‘silver lining’ this week came on Friday as each of the indexes issued positive reversals on the day near major levels of support. This is visible across timeframes.
  • The New Highs vs New Lows are negative again. All week the number of stocks making new lows on the NASDAQ outpaced the number of new highs. This alone produces a red condition.
  • More Distribution this week. Even though it doesn’t show up in the count, both the S&P 500 and the Dow picked up more distribution this week. The reason it doesn’t show in the count is because older distribution days fell off.
  • There are 69 stocks total on the trade ideas list and 2 ‘A’ level setups. It’s been a while since I’ve seen any ‘A’ level setups so this is refreshing. They are in MATX and DFIN. I intend to take positions in both if they break out. See the ‘action list’ above for the plan.
  • My swing account is presently 100% cash.
  • Over my last 10 closed trades, my batting avg is back to 50%. By Tuesday of last week I had exited all of my positions with 3 winners and 2 losers.

HOW I’M PLAYING THIS HAND: To start the week, I’m sticking with 1/4 size positions and am planning to enter orders on MATX and DFIN.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/o76bsXrR/

WEEKLY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/KdEjjPZP/

DAILY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/1pEGB2SO/
(on the lower right is FFTY, the ETF that tracks the IBD 50)

MARKET MOOD REVIEW

LESSON

 Elite Members go to Elite Weekly Trading for this week’s topic Roundup of Sectors, Indexes, and Trades (Stu) 

WEEKLY PREP

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

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