fbpx

WEEKLY GAME PLAN September 04, 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

Last week the market rallied and conditions have continued to improve. Looking at the ‘market mood log’ in the list above, you’ll notice that over the last 2 weeks, the trends have stabilized. In fact, the only thing preventing a ‘green condition’ at present is the last of ‘A’ level setups. I’m still seeing mostly ‘B’ quality setups.

Here’s a summary of what I’m seeing presently:

  • Major indexes stable / bullish: Looking at the ‘market mood log’ in the list above, you’ll notice that over the last 2 weeks, the trends have stabilized with a bullish bias across all time frames and indexes.
  • The New Highs vs New Lows list rebounded. Stocks making new highs are climing hitting high double digits on the NYSE and increasing on the NASDAQ as well. New lows were in the low single digits. Precisely what you’d expect when the market is making new highs.
  • Distribution Days continue to fall off. The S&P 500 and Dow each only have 2 distribution days over the past 25 days and only have 1 in the last 10 days. This a significant change from only a few weeks ago and shows the selling pressure has lightened up.
  • There are 56 stocks total on the trade ideas list. This is the most I’ve seen in months. Granted 50 of them are entering the “in the neighborhood” stage while only 6 are on the focus list. This could be a good thing if the 50 tighten up some more. It’s almost like a club where there’s a long line outside and a few people inside. Something is happening here.
  • 4 out of 6 open trades are positive. The trades that are underwater (SQ and SHOP) each showed some level of buyers stepping in. While each are early, the fact that short term weakness was bought gave me the patience to sit.
  • 5 of my last 10 trades were winners. This is within my historical batting avg about 40%.

HOW I’M PLAYING THIS HAND: Heading into the week, I’m only placing 1 order and its for IDXX. The reason why is because I still have about 2.5R of initial capital risk on the table. I don’t want to bump it up too much beyond 3R. I want to give the trades I have more time to work plus I don’t feel strongly enough about the other ideas on the focus list to kick out any of the trades I’m currently holding.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Overcall Direction = Up: https://www.tradingview.com/x/h3WoVO1R/

WEEKLY CHARTS (indexes) Overcall Direction = Uptrend: https://www.tradingview.com/x/xCbq8laT/

DAILY CHARTS (indexes) Overcall Direction = Uptrend: https://www.tradingview.com/x/KRyYQzJO/
(on the lower right is the image of stocks hitting new highs vs new lows on the NASDAQ & NYSE)

MARKET MOOD REVIEW

WINNING and LOSING STREAKS… What YOU Should Expect
Post Analysis of Recent Trades

 

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.