WEEKLY GAME PLAN September 11, 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 market slipped into a red condition last week for a number of reasons which I’ll outline below. I am, however, cautiously optimistic. I’m seeing several interesting ideas on the Trade Ideas List and a few quality names that are ready right now on the Focus List.

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

  • Major indexes are shaking: Last week the indexes pulled back on both the weekly and daily timeframes. The Dow actually slipped into a short term downtrend. One thing I thought was interesting is that the FFTY (the ETF that tracks the IBD 50) still remains in a strong uptrend.
  • The New Highs vs New Lows list stalled. Both the NASDAQ and NYSE saw new highs drop back into the mid double digits. This has me cautious and I’ll be monitoring it closely next week.
  • Distribution Days are on the rise. The S&P 500 picked up 2 distribution days and the Dow picked up 3. In the span of a week, that’s a lot. Not enough to abandon ship on trades that are working, but enough for me to lighten up on stocks showing weakness.
  • There are 54 stocks total on the trade ideas list. This is a good amount. 47 of them are entering the “in the neighborhood” stage and 7 are on the focus list. Last week, most stocks that were setting up fell and were a big part of the reason for the red condition.
  • 1 trade open, 1 trade positive. I did a significant amount of trimming last week. Closing out all but COOP which closed the week strong.
  • 4 of my last 10 trades were winners. This is within my historical batting avg about 40%.

HOW I’M PLAYING THIS HAND: I’m placing orders on 4 trades to kick things off next week. OAS, IDXX, FB, and EDR. I’ll be risking 0.25% capital on each of them. In a red, choppy condition I like to participate in names that I feel strongly about, but position size smaller in case the market remains choppy and shakes me out.

Checkout the charts of the indexes below.

MONTHLY CHARTS (indexes) Overcall Direction = Up: https://www.tradingview.com/x/aJ30dGaH/

WEEKLY CHARTS (indexes) Overcall Direction = Sideways: https://www.tradingview.com/x/7121wQi7/

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


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