The Wagner Daily -$SNAP closed higher despite the weak tape

The Wagner Daily – September 8, 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:

• $CRWD and $SNAP orders triggered.
• Per intraday alert, bought $DOCU at $300.
• Stopped out of the first $DOCU entry along with the second half of $DLO.

Commentary:

Market averages pulled back on Tuesday in the -0.4% to -1% range, with the exception of $QQQ, which closed just above break-even.

In the short term, we could see more chop from market averages to allow moving averages to catch up.

$CRWD and $SNAP buy orders triggered in the model portfolio. Note that we stopped out of the remaining half position in $DLO just below breakeven (very small loss). The first entry in $DOCU also triggered its stop.

Ugly day in $DOCU, closing below the 50ma on volume. We still have a 3% position from our entry near $300 on Tuesday.  

$CRWD buy limit order triggered buy did not hold up well, as it closed below the 10-day EMA on a pick up in volume. Note the tight stop.

$SNAP closed higher on a pick up in volume despite the weak tape.  

There is one new official setup for Wednesday.

We have a buy stop in $RLBX over Tuesday’s high looking for the price action to follow through to the upside after undercutting and reclaiming the 50-day MA last week.

The protective stop is just below last week’s low.

$SQ is not an official setup but is potentially in play for a starter entry over the two-day high.

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

• $SQ – buy at 271.00
• $ATKR – buy at 92.06
• $AMD – buy at 110-111.37
• Others to watch:  $FIGS $COIN $RRR $HCA  $BASE $BYRN $PLXW

See you in the Live Trading Room

Rick

For those new to this report, our share size is pretty conservative with max. size around 10% of equity per trade. We do this because we prefer to trade 10-12 names to keep the report active.  However, if your goal is to maximize returns, taking 18-25% positions is the way to go.   If trading in a non-margin account, this will limit the portfolio to 4-5 positions.  If on margin, then 8-10 positions. Our risk per trade on average is just over 1/2 of 1%. Experienced traders may want to risk 1% to 2% per trade.   For example, a 20% position in a 100k account with a 6% stop loss would result in a $1,200 loss (1.2%). 

Click on the link below to view this week’s watchlist in google sheets.

This list is a good starting point for monitoring the health of the market for those who have limited time.

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