The Wagner Daily – Positive Breakaway Gap for $MU

The Wagner December 22, 2021

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MTG Market Timing Model – SELL  

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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:

Holiday Schedule – US markets will be closed on Friday, December 24. An abbreviated version of The Wagner Daily will be published on Wednesday night for Thursday’s session. No report Thursday night but back to work on Sunday night.

Happy Holidays!

The market followed through on Monday’s reversal action with solid gains in all major averages. Growth ETFs $ARKK, $FFTY, and $IWP led with gains of +3%. Small caps rallied +2.9%, and the Nasdaq Composite +2.8%. The S&P 500 just missed out on printing a second follow-through day due to lighter volume on a +1.8% gain.  

The S&P 500 reclaimed the 20ema and 50ma but the Nasdaq remains below both and is still in a downtrend with two lower highs and lower lows in place. The Nasdaq will have to work through quite a bit of resistance to take out the swing high (last lower high) and reverse the downtrend.

A handful of stocks caught our attention on Tuesday. Maybe one or two small pilot buys can be made by aggressive traders with reduced size and/or a tight stop, but there isn’t enough evidence to justify taking much risk.

$ANET cleared the two-day high with an inside bar on Tuesday. Volume ticked higher with a close back above the original pivot. A slight pullback to the $136.50 – $137 area can serve as an entry with a stop beneath Monday’s low or Friday’s low for those with more patience.

This is an official setup on today’s watchlist.

Other charts we are monitoring:

$DDOG has held up really well and could potentially be in play unofficially on a test of the 50-day MA this week.

$MU’s breakaway gap up held, a positive sign. In a strong market, a buy stop can be placed over the gap-up day high, but given that conditions are less than ideal it’s a higher risk entry.

Few more symbols to monitor: $CIEN $PSTG $PI $SNOW $AMD $ON $MRVL $QCOM $PANW $MDB

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

• none

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