The Wagner Daily – $TSLA Undercuts 50-day MA, Bullish Reversal Candle Formed

The Wagner Daily – December 8, 2021

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MTG Market Timing Model – SELL  (could be back in buy mode very soon)

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, bought $NVDA.

Commentary:

Stocks gapped significantly higher on Tuesday and held, with the S&P 500, Nasdaq Composite, and Nasdaq 100 reclaiming the 20-day EMA on the daily chart. Midcap Growth ETF $IWP gained 3% but is still well below the 20 and 50-day MAs (lagging).

Total volume was lighter on the NYSE and Nasdaq, but the price and volume action in leadership was overall bullish. Our timing model remains on a sell, but if the Nasdaq Composite can hold up for a day or two without giving back much of Tuesday’s advance the model could shift into buy mode, especially if we see strength out of leading stocks.  That being said, the model does not have to be in buy mode to add exposure, which is why we bought $NVDA on Tuesday and have a buy limit order out there to enter $TSLA. Both of these stocks are clear liquid leaders, which is why they are at the top of our shopping list.

Per intraday alert, bought $NVDA as it gapped higher from Monday’s bullish reversal candle. The one day shakeout and recovery back above the 20-day EMA is a bullish sign.

We will look to add to the position at higher prices as long as market conditions continue to improve.

There is one new official setup on today’s watchlist in $TSLA, which undercut the 50-day MA and prior low on Monday and formed a bullish reversal candle. Tuesday’s action held above the high of Monday’s reversal candle, a positive sign. We have a buy limit order in $TSLA at 1,045 with a protective stop below the 50-day MA and just below the 61.8% fib level of Monday’s reversal candle.

There are a handful of stocks we are watching for entries depending on how the market holds up this week.

A few are: $ZIM $AMBA $APP $RBLX $HAYW $SLAB $SNOW

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

• RBLX –  buy around 115-116 area with a stop below the 20-day EMA minus a few points at 107

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