Category: The Wagner Daily – Archives

$BROS is forming the handle portion of a cup with handle pattern. Thursday’s inside day is a buy signal. Generally speaking, the entry is over the high of the inside day, but in this case, the entry is over the two-day high because it is so close.

Financials were relatively weak on Thursday with $XLF closing back below the 50-day MA with a -1.9% loss. Since the real bodies of Monday and Wednesday did not touch the real body of Tuesday, it’s like a one-day island reversal pattern.

The strong rally off the lows in the S&P 500 and Nasdaq Composite has created a window of opportunity for the bulls.

Within the next few days, we should see some sort of short-term pullback (or chop) in the market to test the longs. We wouldn’t mind some weakness, as this would likely produce lower-risk buy points.

$GFS is a recent semiconductor IPO with a ton of relative strength and a  breakout to new highs last week. Monday’s selling closed back below the breakout pivot, but not by much.

We are looking for a move back through the breakout pivot at the buy entry with the 8-day EMA as the stop.

Impressive reversal action off the lows in the major indexes last week.

S&P 500 – There is quite a bit of support in the 4,100 – 4,200 area with three bullish reversal candles off the lows in the last two months.

Last week’s action produced a bullish engulfing candle which occurs when the real body of the current candle opens below and closes above the body of the prior candle. The prior candle should be red . The engulfing candle shouldn’t have big wicks where the open and close are too far from the high and low of the day.

Stocks rallied significantly higher for the third session in a row with the S&P 500 and Nasdaq Composite closing more than 1% above the 21-day EMA.  As mentioned in yesterday’s report, the S&P 500 is on a buy signal due to Wednesday’s follow-through day. Thursday’s action added to the strength of the signal.

$GFS is a recent IPO from last October with good earnings and sales growth. There isn’t much to do up here after a +20% run up in tow days. On a watchlist for now, just monitoring. Like $PSTG, the relative strength line has already broken out ahead of price.

The Nasdaq Composite gained 3.8% on higher volume but did not qualify as a follow-through day as it was only day 2 of a new rally attempt. The price recaptured the 20-day EMA on a closing basis

This is not an official setup but maybe something we add to the portfolio via an intraday alert. Back above the 20-day EMA is a good start.

$PSTG held support from the rising 8-day EMA and formed a tight-ranged inside day on Tuesday. A move through the inside day high is the unofficial buy point. A stop can be placed below Monday’s low.

Financials may be in play on the short side with $XLF stalling at a big support level that is now resistance. For those trading IRA accounts, the 3x Financial Bear ETF $FAZ is buyable if/when $XLF takes out Monday’s low. 

This is not an official setup but maybe something we add to the portfolio via an intraday alert.