WEEKLY GAME PLAN October 9, 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:

  • Major indexes improve but tug of war continues: The indexes are firmly sideways across the board and are caught between the support / resistance levels as well as the 50 / 200smas. Only the Russell 2000 isn’t stuck between its moving averages but that’s because its moved sideways for so long that all the moving averages have converged. Here’s a look at the Russell (click). Nuts, isn’t it? If that weren’t enough, each time a distribution day has been ready to fall off the count, the indexes have picked up a fresh one. It really is a strong tug of war!
  • The New Highs vs New Lows started to rebound. They started off the week negative but rebounded a bit on Thursday and Friday. If the market continues to chop, this will likely drop back into the red. If it breaks out, we’ll likely see follow through here as well. And if not, I’d be suspicious of the new trend.
  • More Distribution this week. As mentioned earlier, each time a distribution day has come off the count, a fresh one has been added. The count over the past 10 days on the S&P is at 3. If it picks up another we’ll have a ‘cluster’ and this increases the odds of downside pressure.
  • There are 35 stocks total on the trade ideas list. Mostly B and C level setups. There’s a few ideas that we discussed as potential future leaders like SNOW, ABNB, and ASAN (okay ASAN has already been a leader). They’re consolidating but given their charts on the daily time frame, you’re really banking on them to run immediately OR you’re using a very wide stop to enter immediately. They could improve mid-week and I’ll be keeping an eye on them.
  • 1 out of 5 of my open trades are in profit. Not exactly what I like to be holding over a weekend but each have major support levels and decent action on their weekly time frames. If the bulls win the tug of war, these will hopefully be among the first to continue rallying. Each of the RS lines are at highs. MATX, KFY, WCC, DFIN, UPST.
  • Over my last 10 closed trades, my batting avg is back to 50%. We’ll see if it stays that way.

HOW I’M PLAYING THIS HAND: Sometimes the best thing to buy is more of what you’ve already got. I’m planning to add to my position in UPST next week if it follows through above last week’s high. I’ve outlined my plan in the action list above.

Checkout the charts of the indexes below.

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

WEEKLY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/251hPlXV/

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



 Elite Members go to Elite Training for this week’s topic Daily Portfolio Prep Sheet (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.