Editor’s Note: The commentary below appeared in the July 15, 2021 issue of The Wagner Daily stock trading report. The Watchlist and Model Portfolio section of the report is restricted to paid subscribers.
The Nasdaq Composite, Nasdaq 100, and S&P 500 indices remain near their highs, but recent price action “under the hood” may be cause for concern.
Out of the roughly 120 leadership stocks on our daily watchlist, 41 stocks were down 3% or more yesterday (July 14).
Leadership has narrowed to just a few big cap tech stocks pushing higher, which is not a positive sign for the current rally.
The daily chart below shows the Nasdaq Composite on top, and the percentage of stocks trading above their 40-day moving averages on the bottom section:
The percentage of stocks trading above their 40-day moving averages (~35%) is near a level that we normally associate with a significant pullback in the market–BUT the Nasdaq is at its high.
That’s quite a bit of (bearish) divergence!
In the July 14 trading report, we tightened stops to reduce risk, and even proactively sold a few stocks ahead of their stops per intraday alert on Wednesday morning.
Currently, we have closed most of our open positions for a scratch or small loss, while locking in a +20% gain on $NVDA.
Our subscribers are always happy that The Wagner Daily trading strategy continues to protect profits–even if it means sitting on the sidelines for a short period.
Being prepared and informed on a daily basis is the key to success in a dynamic, volatile market.
That’s why we constantly provide valuable information, powerful lessons, and timely trade alerts via our flagship daily stock trading report and new Wagner Daily PRO service.
As always, we will promptly notify subscribers of our exact entry, stop, and target prices for the next explosive trade setup we buy.
Sign up now to stay one step ahead of the market, protect profits, and receive real time trade alerts!
Are you ready to seize the golden opportunity in trading? In our last analysis, we forecasted a monumental breakout in…
Embark on a journey to master the art of crypto swing trading with Deron Wagner, founder of Morpheus Trading Group.…
In the fast-paced world of trading, navigating through the noise of social media can be daunting. But fear not, for…
Feeling a bit shaken up by Bitcoin's recent turbulence? Don't worry, we've got you covered! Dive into this comprehensive guide…
Ever left mountains of potential profits on the table by exiting your winning trades too soon? Kicking yourself for missing…
In trading, timing is everything. Catching that massive breakout move that can deliver life-changing gains is the dream of every…