The Wagner Daily Subscriber Guide
- today's watchlist - When clear stock or ETF swing trade opportunities present themselves, this is where the specific details of the technical setup are listed. Specific share size, trigger, stop, and target prices are all provided. The frequency of setups provided is dependent on both market conditions and our current number of open positions, but we typically target several new stocks or ETFs for entry each week. Holding times vary, but average between 1 to 3 weeks. Rather than inundating you with an unrealistic number of trades to follow, we use an actual model account that ensures we are never positioned beyond its maximum buying power. The model account is $50,000 for the ETF account and $50,000 for the stock account. With maximum buying power of 2 to 1 brokerage margin, this gives each account a total buying power of $100,000. Traders can simply divide or multiply our pre-determined share size in order to match the proportionate size of their own trading account.
Ticker symbol of the stock or ETF
Side - Indicates whether the trade is a long entry (buy) or short entry (sell short)
Type - This is the order type for the trade. If new to trading, a basic explanation of order types can be found here.
Shares - The share size we are targeting for entry, based upon the $50,000 model account explained above. Maximum risk per trade (share size times the number of points to the stop) is typically 1% of the model account size ($500).
Trigger - Exact price that the stock or ETF must trade through before we will enter the trade. For a "long" setup, the stock or ETF must trade at or above the trigger price (for "buy stop") or the maximum price we will pay for the trade (for "buy limit"). For a "short" setup, it must trade at or below the trigger price ("sell stop"). Note that we will only enter the position if the trigger price is hit during the trading day. Entering a trade before it trades through its pre-determined trigger price substantially increases the risk of loss, and is not recommended.
IMPORTANT NOTE: When a stock or ETF "gaps" (opening price change from previous day's closing price) more than 1.3% above or below a trigger price for entry, the setup is automatically cancelled. For example, if we list a buy trigger at $30.00 and the price the following day opens greater than $30.39 ($30 x 1.3%), the trade is is automatically cancelled. So, if the stock/ETF opens at $30.45 the trade is automatically cancelled. One must place a buy stop-limit order to execute this rule. This is done by placing a buy stop order to trigger at $30.00, with a maximum fill (a limit) at $30.39. It is generally only necessary to do this when the futures market is indicating a sharp "gap" from the previous day's close.
Stop - If the setup triggers for entry, this is the initial price at which we will have a protective stop market order (we always use "stop market," not "stop limit" orders). As a position becomes profitable, this stop price will often be trailed higher in order to lock in profits. Any new adjustments to the stop price are also reported in the next day's newsletter, under the "open positions" section. Note that trades are automatically closed if they hit their predetermined stop prices during the next trading session.
Target - This is the roughly anticipated price we expect the stock or ETF will move to. Note that we automatically close trades as soon as they hit their target prices (unless the "stop" price is hit first). However, this does not mean we will always hold the stock or ETF to that price. When conditions warrant, we will take profits before the predetermined target price. Again, any pre-market changes to the target price are reported under the "open positions" section.
open positions - An overview of all open stock and ETF positions currently held in the model trading accounts. In this section, our current protective stop and target prices are listed for each position. When changes have been made to open positions, such as stop or target prices, the cells are highlighted in pink color for quick reference. New trade entries since the previous day's report are shaded in green colored cells. The abbreviation "CO" listed in the "stop" column means we are closing the open position on the next day's market open. "Current P/L" of open positions is based on the closing marked to market value of the most recent trading day.
closed positions - An overview of all stock and ETF positions that were closed only since the previous day's report. A cumulative performance report of all past trades can be found on the performance page of our web site. When reporting closed positions, we use realistic entry and exit prices that account for normal slippage, rather than the exact, theoretical prices that were listed in the setup. "Net P/L" of closed positions is based on the model account size and includes realistic commission fees of 1 cent per share.
ETF and broad market commentary - This section provides a technical recap of the day's market action and discusses specific industry sectors or ETFs we are monitoring for potential entry on the long or short side of the market (depending on market trend).
- Legend to chart annotations - On the charts included in the commentary, here is a key for the various indicators on the charts:
- beige line = 20-day exponential moving average (EMA)
- teal line = 50-day simple moving average (SMA)
- orange line = 200-day simple moving average (SMA)
stock commentary - This section provides commentary on individual stocks we are targeting for potential swing trade entry. Because some members trade only ETFs, others trade only individual stocks, and some members trade both ETFs and stocks, we separate the commentary and trade setups for easy reference.
As always, please feel free to e-mail us with any questions, comments, or feedback on The Wagner Daily newsletter. Enjoy your subscription and good trading to you!
DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily ( hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have a position in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results.
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