The Nasdaq Composite is coming into heavy resistance on the daily chart. Depending on how the Nasdaq reacts, we could be back on a buy signal next week.
Category: The Wagner Daily – Archives
Welcome to The Wagner Daily!
Nightly swing trading stock report since 2002
Enjoy browsing past issues of our flagship Wagner Daily newsletter below (available here at least two weeks after publication date).
Your Wagner Daily membership provides you with:
- Top swing trading stock picks with setup details
- Swing trade alerts
- Weekly watchlist with the best stocks for swing trading
- Trackable stock portfolio
- Professionally moderated Swing Trading Chatroom
Press HERE to get started now with the best stock picking service for swing trading!
$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.
In our last report, we discussed $AAPL potentially finding support at the 20-day EMA which played out on Monday. A bounce off the 20-day EMA could help lift $QQQ higher this week.
The S&P 500 is the leading index and is still trading above the 50-day MA but also has some issues. Last Thursday’s selloff was a higher volume distribution day. If distribution occurs on days one or two after a follow-through day, then the follow-through day has a 95% failure rate. On Friday, the S&P 500 broke the low of the follow-through day, another negative sign.
We are back to a 100% cash position
The timing model is in danger of going back to a sell signal if the follow-through day low is day is taken out
Growth stocks are in a significant correction and may need a few more weeks to build low-risk buy points
$ANET broke out to new highs from a bullish 5-week consolidation on Wednesday’s follow through day. The breakout was confirmed by volume which was 70% above average (40% or more is ideal).
No entry yet on $ANET, as we are waiting for a lower-risk buy point to emerge, such as a few hours of tight-ranged chop on the hourly chart or a slight pullback to the $135 – $136 area.
There is quite a bit of support on the weekly chart from the rising 20-period EMA and uptrend line around 15,000. Generally speaking, it’s best to operate with the mindset that support will hold until we are proven wrong.
Market conditions continue to deteriorate with the Nasdaq Composite and Nasdaq 100 closing below the 20-day EMA after a short-term bounce. The Nasdaq Composite closed just above the 50-day MA and prior base high which did not provide much support during the last selloff.
$NVDA $SNOW $JXN $CIEN $FLR $PFE $HD $MRVL $QCOM $APA $CSX $CDNS $LSI $ESI $TECK. Homebuilder stocks may be worth tracking for a pullback entry later this week.
Shorts – $ZS $BILL
$ZS is in play unofficially below $300.
The timing model could be back in sell mode if the Nasdaq Composite closes 1% below the 21-day EMA
