Charts Updated: 12-21-2021
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).
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Today we got another one of those binary gap up days – but with a difference.
First off, although the indexes haven’t produced the blowoff reversal I’ve been hoping to see, the Q’s, SPX, and IWM all now have decent three-day reversal patterns in place, similar to a morning star reversal.
Second, every one of the stocks that we highlighted in yesterday’s update - those which were holding short-term support - were up today, some big, like JMIA (11%), SEED (11%), TEAM (11%), and others.
Even better, most of those names gave opportunities the get involved AFTER the open.
And even double super better, the VIX continued to come in, and now has a lower high in place.
The optimal situation, the one that would line up with the potential scenario I laid out in this weekend’s strategy video, would be for the market to “rest” – aka, move up or down slightly, or stay flat – for the next two days.
If that happens, I think we’d be primed for a Santa Claus rally, which usually starts the first trading day after Christmas.
But we’re still not out of the woods yet, so make sure you are selling some into strength and know where your stops are.
The worst-case scenario would be for us to close at or below yesterday’s low going into the 3-day weekend.
To be continued…
Okay, let’s get to a ton of charts.
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Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.