Shelving on stucco

Good day all! My question is: I have water damaged/rotted plywood siding, which serves as a base for building felt, wire mesh lathe, and stucco for final outer later. I've cut out 2' H by 3' wide sections of the rotted plywood, and replace it with new plywood, which I then add 15 lb building paper, wire lathe, then stucco 3 layers over the lathe. My ? is: should I use Thompson's water seal on the new plywood? or paint it with a latex, or whatever wood primer? Or something else to prevent or slow future moisture damage? I'm open for suggestions...my wife just wants me to get it finished, but I want to do it right. Thanks for any and all your help, Andy (Majac777)

Being a hands on type of guy I recently took on siding my house with Hardiplank lap siding. After some serious set-backs [Replacing a broken rim joist, and breaking my leg] the 2nd not being job related I have come to the decision that I can not beat old man winter on the large side of my house. This side is about 40ft long and about 30ft high. At the time I am posting this I am around 12ft high and all the way across. I have built a circus looking tent and have started caulking and painting the board so what I have up will be sealed. My question I am needing advice on what is the best way to seal my top plank to keep the water out from behind the siding as much as possible. Behind the board I up I have installed plywood with Tyvec house wrap. Right above where my siding stops the house still has the old foam insulation, I am going to try and remove and replace with plywood and tyvec. Hopefully some one has the knowledge to help my siding make it through the winter.