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):
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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:
- Sold $MTSI on the open for a small loss. $OLLI stop triggered for the 1.5% add only (also a small loss).
Last Friday’s wide ranged candle in the S&P 500 ETF ($SPY) was the third failed attempt to push through $219 in ten sessions. Friday’s high is a clear resistance level and Friday’s low now support. Until there is a definitive break in one direction we can expect more chop.
$SPY daily chart:
There is one new setup on today’s watchlist in $RSYS, which is a micro cap trading within 10% of its 52-week high. $RSYS has a 96 RS rating and 78 EPS rating, with several quarters in a row of improving earnings and revenue growth. Although the fundamentals are improving, we plan to sell $RSYS into strength, so it is a swing trade.
Technically, it is trading in a tight range above the 50-day MA on declining volume. Our buy entry is above last week’s high, looking for a pick up in volume to confirm the move.
The stop is split, with half the position a hard stop below $5 and the other half below $4.74.
Note that we canceled the buy setup in $PYPL and will look to enter on a reversal candle, if one develops off the 200-day MA.
The stop in $MTCH has been raised but remains on a closing basis.
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.
