The Wagner Daily – Monday Buy Signal; Stocks Up

The Wagner Daily – February 1, 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 due to FTD in S&P 500 & Nasdaq

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:

Stocks followed through on last Friday’s strength with a trend day to the upside in most major averages.

The S&P 500 and Nasdaq Composite triggered a buy signal in our timing model with Monday’s follow-through on day 6 of a new rally attempt.

Monday’s follow-through day was far from ideal due to the lack of quality leadership. Most stocks are bouncing from very oversold levels and there is very little in the way of stocks ready to breakout from a valid basing pattern within 10-20% of a 52-week high.

There are no new official setups for Tuesday.

The timing model is back on a buy signal but for the time being there isn’t much to do. Maybe recent leaders can pull back in for a day or two and produce lower risk entry points.

Some leading stocks: $AAPL $CF $MDRX $ZIM $MATX $V

We will send an intraday alert if any new setups trigger.

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

• $OVV – buy at 39.15
• $V – buy at 227.0
• $HCC – buy at 26.45

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%). 

This list is a good starting point for monitoring the health of the market for those who have limited time.

https://morpheustrading.com/services/swing-trade-alerts

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