Category: The Wagner Daily – Archives

All major indices closed in positive territory on day three of a new rally attempt in the market. The Nasdaq Composite triggered a buy signal in our timing model with Wednesday’s close at least 1% above the 21-day EMA. Since the correction off the highs (so far) is less than 10%, we don’t need a follow-through day to produce a buy signal.

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.

$ZIM is also setting higher lows the past few weeks while holding on to the rising 20-day EMA. In a decent market, the break of the downtrend line is generally a decent spot to put on partial size with the idea of adding as the price moves higher. There is no entry for now as we are just monitoring the action.

Our weekend scans did not turn up any actionable setups which wasn’t much of a surprise given the way stocks sold off late last week.

Below are a few stocks showing strength for now, but anything can happen.

These stocks could be in play for partial size within the next few days if major indices are able to find some traction.

The charts below are not official setups…just monitoring for now.

Stock Market Update for December 3, 2021 + New Relative Strength Leaders

The S&P 500 sliced through the 50-day MA and closed at the 50% fibo level. The next significant level is the 61.8% fibo at 4,456.

With all major indices we track below the 20-day EMA, there is no reason to put money to work on the long side. Note all the new stops in the watchlist section above.

There are no new official setups for Wednesday’s session. We are monitoring a handful of stocks in case the Nasdaq does reverse higher – $AMBA $LI $PSTG $TSLA $U $ZIM $APP $RIVN $TTD $BITF

$LI is not an official setup but could be in play over the two-day high after Monday’s gap on 4x average volume.

$ENPH closed back above the 10-day EMA with a tight-ranged inside day on Monday. The two-day high is our buy stop entry to add back the shares we recently sold into strength.

Last Friday’s close below the 20-day EMA in the Nasdaq Composite and the S&P 500 triggered a sell signal in our market timing model. With the model on a sell, we believe it’s best to play defense and tighten up stops to protect gains / minimize losses as the odds have increased for further weakness.

The break of the 20-day EMA suggests further weakness but anything can happen. We are still leaning towards a fairly short-term pullback followed by higher prices in December, but that isn’t a prediction as we know anything can happen.

US markets will close at 1 pm EST on Friday, November 26.

Tonight’s report is an abbreviated version with no charts. The video version of the report will return next Thursday.