The Wagner Daily – February 4, 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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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):
closed positions:
position notes:
- Per intraday alert, sold short $ZS.
For the second day in a row the market will likely open with a significant gap but this time to the upside, as $AMZN popped 14% higher in response to earnings.
As of this writing, S&P 500 and Nasdaq 100 futures are trading +1.1% and +1.9% higher respectively.
Per intraday alert, $ZS was added to the model portfolio as a short to balance out our two longs. Prior to the after-hours pop, the S&P 500 and Nasdaq Composite closed near the lows of the day with losses in the -2.4% to -3.6% range.
There is one new official setup for Friday’s session as we look to add to our position in $CF over the high of Thursday’s tight-ranged session. If triggered, the stop is Thursday’s low.
Energy remains the most attractive group from our nightly scans. $XPO $MTDR $DVN $HAL $PSX $PDCE $APA are a few good looking charts (there are more).
$DVN is sitting in a tight range the past two days and is also in play over the two-day high. This is not an official entry.
$MTDR is looking good on the daily chart and just needs to get going.
Unofficial Setups – For experienced traders only, no guidance is given for these setups.
Depending on market conditions:
- Longs – $CF $DVN $MTDR $UPS (on strength over prior day’s high)
- Shorts – below the prior day’s low – $MRNA $DHI
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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