market timing model: BUY Signal generated on close of Sept. 21

On a buy signal. It is ok to begin establishing new positions.

Note that the market timing model was not created to catch tops and bottoms in the S&P 500. The model was designed to keep our trades in line with the prevailing market trend. Buy signals (confirmed) are generated when the price and volume action of leading stocks and the major averages are in harmony. This means that we could potentially have a buy signal in a major market average, but if leading stocks are not forming bullish patterns, then we are forced to remain on the sidelines until patterns improve.

today’s watchlist (potential trade entries):

Having trouble seeing the open positions graphic above? Click here to view it directly on your web browser instead.
open positions:

Below is an overview of all open positions, as well as a report on all positions that were closed only since the previous day’s newsletter. Changes to open positions since the previous report are listed in pink shaded cells below. Be sure to read the Wagner Daily subscriber guide for important, automatic rules on trade entries and exits.

Having trouble seeing the open positions graphic above? Click here to view it directly on your web browser instead.
closed positions:

Having trouble seeing the closed positions graphic above? Click here to view it directly on your web browser instead.

position notes:

• $GDDY and $PYPL buy entries triggered.

Commentary:

Stocks bounced back on Tuesday, led by a 1% rally in the NASDAQ and a bullish engulfing candle in the S&P 500 and Dow Jones. The advance was confirmed by a pick up in volume on both the NYSE and NASDAQ exchanges.

$GDDY and $PYPL buy entries triggered, bringing our exposure up to 10% in $PYPL. Tuesday’s advance in $PYPL was a bit disappointing as it rallied on lighter volume.

$GDDY bounced off support of the 20-day EMA once again, and closed above Monday’s high on a pick up in volume (bullish sign). For those not already in, $GDDY is still worthy of an entry on slight weakness, or on a move above Tuesday’s high.

There are two new buy setups on Wednesday’s watchlist. The first is a buy limit order in $MTCH at/near the rising 10-day MA, just in case there is a sharp one or two day pullback.

The $17 area has support from the 10-day MA, prior base highs, and the downtrend line.

The second entry is breakout setup in $TPIC (no chart below) which was a self-serve setup this week but is now an official buy setup. Note the tight range and bullish volume pattern the past two weeks. The buy entry is over Tuesday’s high with a stop below the 20-day EMA on a closing basis.

Self-Serve Watchlist:

This is an unofficial watchlist of potential setups for today’s session (trade results will not be monitored). This list is for experienced traders only who are looking for a few ideas. No targets will be listed. Please check for earnings before entering.

All stops are on a closing basis unless listed as a “hard” stop.