The Wagner Daily – No New Setups, $DIA and $QQQ near MA

The Wagner Daily – January 20, 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 (though both SP 500 & Nasdaq are on standby for a sell 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):

open positions:

closed positions:

position notes:

• No trades triggered

Commentary:

Nasdaq Composite remains in a sharp selloff after following through on Tuesday’s break of the 200-day MA with a -1% loss. The Nasdaq is likely headed for a test or undercut of the prior low.

S&P 500 is below the 100-day EMA and likely headed to the 4,500 area.

$DIA and $QQQ are closing in on the 200-day MA.

In last night’s report we discussed a few unofficial short ideas in $TSLA and $XPEV. Both triggered and sold off sharply. $MU and $ON were on the unofficil watchlist and were hit hard as well.

There are no new official setups for Thursday. There wasn’t much out there in terms of low-risk entry points yesterday and after Wednesday’s selling the setups have really dried up.

There is one unofficial long idea in iShares China Large-Cap ETF ($FXI), which has pulled back into support from the rising 8-day and 20-day EMAs after a strong thrust off the lows.

A move through Wednesday’s high is the trigger.

Unofficial Setups – For experienced traders only, no guidance is given for these setups.

See you in the chat room,

Rick

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%). 

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