The Wagner Daily – January 13, 2022
Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).
Subscribe now for your access to the best stocks for swing trading, proven Morpheus stock trading strategy, and market timing model with a 20-year track record.
Just drop us a comment with any questions or comments–we’d love to hear from you!
MTG Market Timing Model – Nasdaq (sell), S&P 500 (working on a new buy signal)
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 (potential trade entries):
- Per intraday alert, bought $F and shorted $FIVN.
The S&P 500 closed above the 20-day EMA for the second day in a row on day three of a new rally attempt. The action wasn’t ideal, as the price closed below the open and just below the midpoint of the day’s range. However, the S&P is above the 20 and 50-day MAs and only 2% off its all-time high.
Energy ($XLE), financials ($XLF), and materials ($XLB) are in play on the long side but $XLE and $XLF are a bit extended. Within $XLB $MOS and $FCX are in play with $FCX.
Per intraday alert, we bought $F on a breakout from a tight range on the hourly chart at the 20-period EMA. The hourly chart below shows our entry. The daily chart has formed a bull-flag like pattern.
Tech stocks continue to lag as $QQQ stalled just below the 20-day EMA and the 61.8% fibo level. The bounce is ideal action for shorting some of the weaker areas within the Nasdaq such as software.
Like the S&P, $QQQ also closed below the open and below the midpoint of the day’s range. A break of Wednesday’s low would increase the odds of further selling and a test of the swing low.
Per intraday alert, we shorted $FIVN on a break of the prior day’s low and the 20-day EMA in anticipation of a breakdown from a 6-week consolidation at the lows (below the 10-week MA).
There is one new official setup on the short side in $MSFT. We are selling short beneath Wednesday’s low looking for a test of the swing low and a possible breakdown to the 295-300 area.
Unofficial Setups – For experienced traders only, no guidance is given for these setups.
- $PFE – buy stop 57.53
- $FCX – buy at 45.55
- $OKTA – sell short in the 211-216 area looking for the price to stay below the 20-day EMA +1%.
- $FB – sell short below 331
- $FTNT – sell short below 318 on a breakdown or short a bounce into 325
See you in the chat room,
For those new to this report, our share size is pretty conservative with max. size around 10% of equity per trade. We do this because we prefer to trade 10-12 names to keep the report active. However, if your goal is to maximize returns, taking 18-25% positions is the way to go. If trading in a non-margin account, this will limit the portfolio to 4-5 positions. If on margin, then 8-10 positions. Our risk per trade on average is just over 1/2 of 1%. Experienced traders may want to risk 1% to 2% per trade. For example, a 20% position in a 100k account with a 6% stop loss would result in a $1,200 loss (1.2%).
Start my Wagner Daily membership now to start receiving winning Morpheus stock trade signals, including a stock portfolio you can easily follow. The Wagner Daily PRO includes live swing trader room for daily, real-time trade ideas and powerful stock trading education.