Category: The Wagner Daily – Archives

For those not already long, $ETSY is potentially in play based on last Friday’s reverrsal candle, if it can clear the high of that candle.

$HUBS – buy at 548.00 (base breakout)

$CRWD – buy at 216.00 (reclaimed 50ma and held)

$FOUR – buy at 100.86 (swing)

$UPST – buy at 117.20

Others – $ALGN $SE $CVNA $VCEL $HZNP

Leading growth stocks took a step back on Wednesday with recent movers such as $SQ, $PINS, and $HUBS reversing lower. Overall, market conditions have improved this week, but we have yet to see the type of breakout action that we normally associate with a new bull market rally. This may be due to the overall lack of buyable setups when the Nasdaq put in its Follow-Through Day (FTD), as there was so much damage from the last selloff with most stocks reclaiming the 50-day MA rather than breaking out to new highs.

The model portfolio was active on Wednesday with several stop outs. Small gains in $LRCX, $AMAT, and $FUTU offset losses, while $APPS was sold just below break-even. Not ideal, but we are just trying to limit damage while we wait for our type of market to kick in.

Per intraday alert, we are still long half positions in $PINS and $SNAP, while still holding a 5% position in $ETSY and 6% position in $RBLX (with a breakeven stop).   It may be tough to see a winner like $RBLX go from +13% to +3%, but with our timing model on a fresh new buy signal following a market correction, we are not looking to sell winners for a 10%-15% gain.

There are no new buy setups for today. Let’s see how the market and current open positions respond to Wednesday’s selling.

Per intraday alert, we sold half of $AMAT below the prior day’s low and 10-day EMA. We originally planned to stop the remaining half position out below the 20-day EMA. However, since Tuesday is already day 6 of the pullback, we really don’t want to stick around if the price can’t hold Tuesday’s low and push higher. Even if Tuesday’s low holds, we may look to sell $AMAT on a bounce and rotate money into a new breakout. The same thought process applies to $LRCX.

There is one new official setup for Tuesday in $PINS, which is attempting to form the handle portion of a cup with handle pattern. A handle is a short-term pullback of five or more days on the right side of the cup. The handle should form above the 50-day MA and in the top half of the base. $PINS may or may not form a full handle here, but the pause is good enough for us so we are placing a buy stop over the handle high.  The sell stop is below Monday’s low.  

Last week was a step in the right direction for growth stocks, which is where we prefer to operate in the model portfolio.  

The iShares Russell Midcap Growth ETF $IWP, which is a decent benchmark for us is setting higher highs above the 50-day MA, with the rising 10-day EMA now above the rising 20-day EMA (momentum is building).

The last setup is a potential pullback entry in $SE using a buy limit order. We’d have to get lucky for this entry to trigger, as we are looking for a one-day selloff possibly within the next few days to trigger the limit. If it hits great, if not, then we will continue to monitor the action for a pause or pullback to the rising 10-day EMA.

$SQ is still on our watchlist for a pullback entry either to the 50-day MA or near the 10-day EMA, if the 10ema is above the 50ma.

Bought $APPS over the two-day high. The price failed to follow through right away, but we like the trade using the low of Monday’s reversal candle as our stop.

$MARA and $WSM were added to the model portfolio on Monday. $MARA broke out from its base and followed through with a solid 15% advance on higher volume. $WSM stalled but could retake the high within the next day or two.