The Wagner Daily – $GNRC Approaching Buy Point for Potential Breakout

The Wagner Daily – June 16, 2021

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MTG Market Timing Model – buy mode

Our timing model was designed to keep our trades in line with the prevailing market trend, not to call tops or catch bottoms in S&P 500 or Nasdaq Composite.

today’s watchlist (potential trade entries):

open positions:

closed positions:

position notes:

•    Note the new stops in $SE and $SNAP

Commentary:

The Nasdaq Composite logged a distribution day with Tuesday’s higher volume selloff.

In Monday’s report, we mentioned the lack of setups due to to many stocks on our list being extended from the 10-day EMA. So a few days of rest in the Nasdaq is welcomed, provided that leading stocks avoid breaking down on higher volume. Will leaders like $CRWD, $NET, $SE, and $ZS pull back on light volume to the 10-day EMA and hold? How will recent breakouts in $ASAN, $APP, and $QFIN react if/when they stall and pull back in?

There were no new buys or sells to report in the model portfolio on Tuesday, as we are just looking to hold on to what we have.

$RBLX released some financial data after the close and sold off down to $82 in after-hours trading. For those who are able to watch the market, avoid selling on the open (if below the stop) and wait at least 1-5 minutes for a potential reversal. For those who are unable to watch, either set a time-based stop if your broker allows or exit on the open. Sometimes these gaps happen and we just have to chalk it up to doing business as a trader.

Note the new stops in $SNAP and $SE. With $SNAP, there were two failed attempts to push through $64-65, so we are raising the stop to limit our loss in case the price fails to hold the 10-day EMA.

$SE’s breakout above the downtrend line and prior high failed to attract much buying interest. We have a new stop just below the 10-day EMA. If triggered we will exit with a small 3% loss and monitor for a low-risk buy point.

There are no new official setups for Wednesday. However, $GNRC is approaching the highs of its base and maybe in play on a heavy volume breakout. When entering at an obvious buy point, one could go with a 6% stop or use a close beneath the low of the breakout day as an early exit. 

$GNRC has both ramping earnings and sales growth the last three quarters along with solid IBD ratings, so it is a top-rated stock for us.

Unofficial Setups – For experienced traders only, no guidance is given for these setups.

• $GNRC – buy at 364.26 (base breakout)
• $LAZR – buy at 24.30 (swing trade)
• $TGH – buy at 32.76 (swing trade)

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