$GDDY Poised For Breakout From Cup And Handle Pattern

market timing model: SELL Signal generated on close of Sept. 9

Last Friday’s breakdown generated a sell signal. One can still be long stocks that are holding up well.

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):

$todays watchlist
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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.

$todays watchlist
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closed positions:

open position summary
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position notes:

  • Canceled the $TEAM buy limit order.

Commentary:

The Nasdaq Composite and Nasdaq 100 staged quite the comeback last week, reclaiming the 10, 20, and 50-day MAs by last Friday’s close. There may be a few weeks of chop in the future, but these indices should be in good shape as long as the September 12 lows hold.

While Nasdaq stocks roared back, the S&P 500 went nowhere due to weakness in the financial and energy sectors. The S&P 500 may need to test the 2095 – 2100 area before heading higher.

Please note that the $TEAM buy limit order was canceled. Upon further analysis, we’ve decided to wait for volume to come in before taking a shot. $TEAM is on the self-serve watchlist as a buy on strength only if volume picks up.

There are two new setups on today’s watchlist. Both are breakout setups that should move out right away. If these setups trigger but fail to follow through, then we may decide to cut some or all of the position ahead of the listed stop.

First up is $GDDY [cup and handle pattern], which has formed a very tight trading range around the 20-day EMA and above the 50-day MA. The volume profile is bullish as well, with multiple higher volume accumulation days printing within the past few weeks.

The buy entry is over the two-day high with a stop beneath the two-day low.

$GDDY DAILY

The second setup is a swing trade in $CVGW based on the very bullish price and volume action on September 7. Note the dry up in volume as the price action tightened up, which is textbook. The buy entry is over the two-day high with a stop beneath the recent swing low and 10-day MA, which should hold if the stock is ready to move out.

$CVGW DAILY

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.

$self serve

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