The Lund Loop Daily Update - 03/29/23
As traders and active investors we are always searching for signal, some bit of information or data - usually in the form of price action - that gives us an edge.
And signal can be found in a variety of places. From the mainstream, like the list of new 52-week highs, to the unorthodox, like your panicked brother-in-law, who ALWAYS gets it exactly wrong, calling you to say he’s sold everything.
One of the signals I’ve noticed recently is specific to how the stocks on my green watchlist have been acting.
These are stocks that are set up and ready to trigger on a daily chart. Most of the time they are on the list for only a day, maybe two tops, because they either trigger, or fail, which, by definition moves them off the list.
But over the past few months we’ve witnessed periods where some stocks land on the green list and, despite the overall market moving lower, remain for three or four days, before triggering.
By refusing to budge when the market moves lower, these stocks are exhibiting good relative strength (RS). And stocks that remain steady when the market drops are usually the ones that will perform best when the market rallies.
Some of the stocks that were added to the green watchlist in Saturday’s newsletter finally triggered today. Here’s just a few of them (see charts).
This is the type of “signal” that I think is healthy for the market and one I’ll be watching closely going forward.
For more on this, check out today’s ‘Daily Update’ video below.
Market Snapshot
Sectors: 11 out of 11 sectors were UP.
- Winner: Real Estate +2.31%
- Loser: Health Care +0.24%
Daily Update Video & Watchlists
Charts of interest: AMZN 0.00%↑ TSLA 0.00%↑ OKTA 0.00%↑ AMD 0.00%↑ SPT 0.00%↑ V 0.00%↑ TOL GS 0.00%↑
Note: The cash tags above are a new feature for Substack and the quotes still look a little wonky so refer to the prices in the ‘Daily Update.’
Check out this short video for a full explanation to use the Lund Loop watchlists to identify potential profit opportunities.
Click the links below for the ‘Daily Update’ video and to view the current watchlists & setups.