The Wagner Daily – Nasdaq Below MA’s, Short-term Cash Game Plan

The Wagner Daily – August 19, 2021

Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).

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MTG Market Timing Model – buy mode (but cautious) 

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:

• No trades triggered.

Commentary:

In last night’s report, we discussed resistance at the 20-period EMA on the hourly chart of $SPY and whether or not the price could recover back above. $SPY stalled 2x at the 60 min/ 20-period EMA on Wednesday before selling off sharply into the close.

Possible target area around $435 IF the price is unable to bounce back above the 20-day EMA on the daily chart within the next few days.

A potential change in character?

The Nasdaq Composite is now trading below the 20 and 50-day MAs and is no longer in trend mode. When the price is below the 20-day EMA on the daily there usually isn’t much to do. Our short-term game plan is to remain in cash and see how major indices and leading stocks react to Wednesday’s selling.

If/when conditions improve, $UPST is at the top of our shopping list after a big volume gap up and bullish follow-through. No entry here though, just watching for now.

$DLO closed +26% higher in reaction to earnings. If the potential gap up holds, then $DLO could be in play down the road.  

A few other stocks on our main IBD/Canslim list are: $DOCS $LC $DDOG $ZI $U

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

• none

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