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):

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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.

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closed positions:

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position notes:

• No trades were made.

Commentary:

The Russell 200, S&P 400, and S&P 500 closed near the lows of the recent range and may be due for a short-term bounce within the next few days.

Although the timing model remains on a sell signal, we can still initiate long positions in quality stocks. Being flexible within a trading system is very important, as not all buy signals and sell signals are created equal.

We have one new setup on today’s watchlist in $GIMO, placing a buy limit order just above $48. $GIMO cleared the highs of a tight-ranged base on big volume.

There is a split stop in place to guard against a false breakout. The higher stop is a hard stop, which means that it will be sold right away if triggered. The stop on the other half is on a closing basis.

There is a new watchlist up in the members area of about 80 symbols that we are currently watching. The list is a mix of setups, with some swing trades ready to move out now while others may need a bit more time. How this list reacts over the next few days should provide us with more clues about current market conditions.

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.