Stalking $GDDY and $MTCH Breakouts For Pullback Buy Entry

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):

$todays watchlist
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.

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

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

position notes:

  • No trades were made.

Commentary:

Stocks gapped higher and held, following through on Wednesday’s strong rally. The Nasdaq is in the clear at new highs, but the S&P 500 closed right at the 50-day MA and the $217 resistance level. Big questions to be answered next week or possibly tomorrow are:

  • Can the S&P 500 reclaim the 50-day MA and hold?
  • Will the Russell 2000 follow through on Thursday’s breakout or retreat back into the range?

No setups officially triggered on Thursday due to the 5-minute rule, which applied to both $SIMO and $PYPL. The 5-minute rule was designed to limit false triggers within the first 5-minutes of trading due to wild prints. The rule works well, which is why we use it but is not needed to trade our system. For those interested in using the 5-minute rule, it can be setup mechanically with interactive brokers.

We canceled the $PYPL setup for now. If we enter over Thursday’s high it wouldn’t be that much lower than the swing high, so we are holding out for a better entry. For those who are currently long $PYPL, you can sell the position on Friday’s open for what should be a small loss or gain (look to re-enter with us). We’ll continue to monitor the action for a lower risk entry point.

The $SIMO buy entry remains, but with a slightly higher entry point. Again, if you want to sell on Friday’s open and re-enter at the new trigger price that is fine.

There are no new setups on today’s watchlist, but we are monitoring our lists for entries on a pullback or breakout. $GDDY and $MTCH are two recent breakouts that we are monitoring for a short-term pullback next week.

$GDDY DAILY
$MTCH DAILY

Our short-term plan is to remain patient and avoid chasing entries, as new setups should develop if the market is headed higher.

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

Please leave your comment below!

Your email address will not be published. Required fields are marked *

Follow us on Twitter

Latest Tweets

@MorpheusTrading