The Wagner Daily – October 25, 2022
Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).
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MTG Market Timing Model – BUY (time to put money to work)
Our timing model was designed to keep our trades in line with the prevailing market trend, not to call tops or catch bottoms in S&P 500 or Nasdaq Composite.
today’s watchlist along with open and closed positions:
- New buy limit entry in $GFS.
Monday saw a continuation of the broad market indexes’ upward trend.
By clearing the previous swing high set on October 5 at 3,806, the S&P 500 reversed the downward pattern of lower highs and lower lows. The S&P also set a higher high and higher low in the short term (all detailed on the chart below).
Look for the rising 8-day EMA (light blue line) to provide support on pullbacks.
In the next two weeks, several of the stocks on our radar will report earnings, making it challenging to open new positions. The good news is that earnings season may provide one or two surprises in the form of a post-earnings breakaway gap up. Click here for more info on the breakaway gap-up.
$CEG is in week five of a flat base (15% or less correction of at least five weeks). Ideally, we’d prefer to start buying on a pullback to grab some size prior to the obvious buy point at the base high (90.18). No entry yet, just monitoring for now.
$RBLX closed off the lows of the session and held on to the rising 8-day EMA.
Within our system, a few buy points are in play. The first is over the high of Monday’s reversal. We could also wait for the price to take out the 200-day MA and last week’s high. The standard entry would be over the high of the midpoint of the pattern at 47.05. No entry yet, just monitoring the action.
$GFS impressed by reclaiming its 50-day MA on heavier-than-average volume. A pullback to the 57.35 area (intraday swing low on Monday) is in play for a starter position. This is an official buy setup.
Note the $GFS order is a buy limit, which means that the price will have to pull back to and touch the 57.35 area in order to trigger the trade.
With the timing model in buy mode, we feel comfortable with 3-4 longs and 20-40% exposure. If conditions continue to improve and recent buy entries work, then we will look to put more money to work.
Unofficial Setups –
- Longs – $JACK $RBLX $CEG
- Shorts –
Rick
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