The Wagner Daily – $ZS Stock Update: Potential Exit and Re-entry

The Wagner Daily – July 1, 2021

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MTG Market Timing Model – buy mode due to strength in Nasdaq Composite (still above 20ema)

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:

•   Per intraday alert, sold $SE just above break-even.

Commentary:

Midcap Growth ETF $IWP closed lower after seven days in a row of higher closes. Given that most growth stocks are a bit extended in the short term, a few days of sideways to lower price action would be welcomed.

Per intraday alert, sold $SE due to Wednesday’s ugly response to the prior day’s reversal candle. Overall, we did not like the lack of follow-through above $280.

At A, $SE stalled about the prior high but tightened up nicely above the rising 10-day EMA at B. However, the false breakout action at C was disappointing and led to further weakness. Tuesday’s reversal at D was a positive, but the price failed miserably the following day and closed with a bearish engulfing candle on higher volume. Not what we were looking for so we sold ahead of our stop, just above break-even.

Wednesday’s action in the model portfolio was a punch to the head that may or may not lead to a knockout, depending on how positions react during the next few days. Note all the new stops in the watchlist above. The stops are pretty tight overall due to the lack of a significant profit buffer in most positions. Our thought process here is to take what we can in profits if stocks begin to break down and look to re-enter if setups develop.

$NET is in danger of breaking a steep uptrend line, so we have a tight stop in place for half the position to protect profits. The stop on the other half is a close below the 10-day EMA. This is not a hard stop.

$ZS is an example of a stock that we may have to exit if the 10-day EMA doesn’t hold but could be back in play within a week or two if the price remains above the 20-day EMA.

There are no new setups for Thursday, but the $TIGR buy stop remains live.

$KLIC may be in play on weakness within the next few days if the price touches the 10-day EMA or breaks the short-term downtrend line. This is not an official setup.

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

• $BABA – bull flag entry over yest high at 228.15
• $ZLAB – buy at 178.20
• $SHAK – buy at 108.00
• $RBLX – pullback to 20ema

Others to watch on strength –  $UPST $PATH $PCOR $OSTK $U $XPEV $TXG  (if it stays above Tuesday’s close after squat)

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