The Wagner Daily – LSPD Weakness: New Stop in Place

The Wagner Daily – July 8, 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:

• Note all the new stops above

Commentary:

Big cap tech stocks $APPL, $AMZN, $MSFT, and $GOOGL are leading the S&P 500 and Nasdaq 100 higher. $AAPL and $MSFT are extended in the short-term and may need to digest recent gains with some sideways to lower action which could lead to weakness in the S&P 500.

$SPY has produced back-to-back hanging man candles which suggest the uptrend is losing steam (must be confirmed by further weakness).

The Nasdaq Composite is also showing signs of weakness near the top trendline of its rising channel.

Russell Midcap Growth ETF $IWP closed with a bearish outside day and could be vulnerable to further selling beneath Wednesday’s low.

Our watchlists underperformed on Wednesday, with many growth leaders selling off 3% or more. Except for a few breakouts that moved out right away such as $NVDA, $SPT, and a few others, most have struggled to keep pace with the Nasdaq 100 the past few weeks. During the first few weeks of a strong rally, we normally see new breakouts easily outperform major indices along with multiple waves of breakouts.  With the exception of $AMZN, we haven’t seen many new base breakouts but that could change within the next week or two if stocks such as $BILL, $UPWK, $SHOP, $ROKU, and $ZS move out.

Given all the above, we felt it was best to tighten up stops to protect gains and minimize losses. Please see all new stops above in the open positions section.

Not a great day in $SHOP, but we are not throwing in the towel just yet as the price will have to break the low of Tuesday’s wide-ranged candle to trigger our stop.

$LSPD hasn’t followed through as expected the past few weeks after breaking out to new highs in June. A break of Wednesday’s low could lead to further weakness. Note the new stop in place.

Note that we canceled the $UPWRK buy setup. Also, the second stop in $NVDA is on a closing basis since we have a decent profit buffer.

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

• Not much out there from my scans
• $MSTR – buy at 648.00 (pullback to 10ema for quick swing trade up)

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