Chart Updates: 11-15-2021

These are updated charts from the weekend strategy video that goes out first thing Saturday morning, as well as new charts of interest that pop up during the week.

Comments are attached to each individual chart (click image to view).

Charts fall into four categories:

  • Active setups - Watch for entry.

  • Potential setups - Not ready yet but could be soon.

  • Follow-ups - Previously triggered setups.

  • General - Charts of general market interest

For intraday updates please join the Lund Loop Discord.

The indexes put in their highs for the day in the first 30 minutes, as did most individual stocks (see AAPL below for a typical example).

The market is constantly telling us a story, and each day’s price action is another part of the story. Sometimes it gives clues that make us think we know how the story is going to end, but we never know for sure until we see confirmation.

Right now, the story on the SPX is that we’re still in the correction that started on the 9th. The only other thing we know is that we’ve set a bottom level of 4631-ish and a top-level at ATHs around 4718.50.

Today we printed a very narrow candle, and we won’t know until tomorrow’s action is complete if this marks a lower high, or if it’s just a rest before continuing the move higher that started on Friday.

But right now we’re in a range and we don’t know if that range is going to resolve higher or lower. So, for now, there are three things you can do.

  1. Day trade - if you’ve got that gear.

  2. Strategically scale into stocks that are showing good RS – if you think this range resolves higher.

  3. Nothing – it’s perfectly acceptable to step aside until we get better clarity.

In an ideal world, here’s the story I’d like to see play out.

Back and forth price action in this range for the rest of the week would set up a fantastic opportunity for the market to break higher heading into Thanksgiving – the week of which is historically very bullish.

If that’s how things play out we’ll likely see more setups form in individual names by the end of the week.

Okay, let’s get to the charts.

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