--> $LMAT Poised For Breakout Above Consolidation

$LMAT Poised For Breakout Above Consolidation

market timing model:

BUY

Signal generated on close of July 7

Bull market rally. Long exposure can be in the 50 – 100% range or more depending on success of open 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
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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
Having trouble seeing the open positions graphic above? Click here to view it directly on your web browser instead.
closed positions:

open position summary
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position notes:

  • $LN and $RP buy entries triggered.

Commentary:

Broad market indices failed to follow through on last Wednesday’s bullish reversal action, but did close well off the lows of the week. The lack of follow through isn’t a big deal, as all indices are in good shape technically, and there are no overbought readings on the momentum indicators we follow.

Generally speaking, a market is in good shape when major indices are trading above the rising 20-day EMA, and the 5-day SMA is above the 20-day EMA (which is where they are at currently).

$RP and $LN were added to the model portfolio last Friday. In $RP we are looking for the price to hold above $24.50 and follow through to the upside over the next few weeks.

$LN is a fresh IPO with strong earnings and revenue growth the past 4 quarters and a recent breakout to new highs. Our buy entry was over Thursday’s high after a three day pullback, which triggered and rallied about 3% higher before reversing and closing near the lows of the day.

The 10-day MA is catching up quickly and should offer support within the next day or two above $44, along with the high of 8/12. We like $LN for a swing trade as long as the action holds above the rising 10-day MA on a closing basis.

Anything is possible, but an immediate move back through Friday’s high (line A) is ideal. If the price fails to hold Friday’s low, then a test of the $44.50 area is likely, with a move to new highs to follow within the next week or two (line B), if it is to move higher. Again, we realize that anything can happen and there are a ton of different scenarios that could play out.

$LN DAILY

$MTCH closed out the week in impressive fashion, reclaiming the 50-day MA with an 8% gain on heavy volume. Look for the price to remain above the 50-day MA on a closing basis this week to confirm last Friday’s move. Depending on the price and volume action, we may add to our existing position.

$MTCH DAILY

The $DLTH stop has been moved to break-even, but eventually will become much tighter if the price becomes too extended from the 20-day EMA.

We’d like to add to our position in $BUFF, but we are waiting for a heavy volume close above $27 as a sign that it is ready to do something (other than chop).

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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