The Wagner Daily – $DOCS Stops Out Half Position

The Wagner Daily – July 28, 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:

• Per intraday alert, sold $ROKU for a small loss after it triggered.

Commentary:

The Nasdaq Composite recovered off the lows of the session but Tuesday’s volatility may have opened the door for further weakness. No predictions here, just noting the price has struggled to push higher with two failed breakout attempts above the swing high in July.

The S&P 500 also closed off the lows, but the long wick has a hanging man-like look to it. A lower open and a break of Tuesday’s low would confirm Tuesday’s weakness.

Tuesday’s selling stopped the model portfolio out of all but one position and reduced long exposure to 5%. We are still long $NVDA from an entry off the 10-week MA, but now have a tight stop in place beneath Tuesday’s low.

It’s tough to expect much out of growth when a breakaway gap up in a high-quality name like $SNAP fails to hold. We are out of $SNAP for now but will continue to watch for a re-entry down the road if the price holds up near the low of the gap up day. 

The remaining half position in $DOCS stopped us out beneath Monday’s low. $IPOs can fall apart quickly after setting a new high, which is why we sold half into strength on Monday for a 17% gain.

Per intraday alert, we bought and sold $ROKU Tuesday morning due to the bearish reversal action following our entry. The timing on the entry was off, so we felt it was best to exit with a small loss, especially with earnings around the corner (we were looking for a quick move up).

There are no new official setups for Wednesday. Our short-term plan is to lay low for a day or two and see how the Nasdaq and S&P react to Tuesday’s selling.

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

• watching $DOCU, $SNAP, $RVLV , $INMD

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