The Wagner Daily – Daily Chart Shows Promise for $MTDR

The Wagner Daily – February 4, 2022

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MTG Market Timing Model –  BUY (so far a weak buy signal with only energy and agriculture stocks setting up) 

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:

• Per intraday alert, sold short $ZS.

Commentary:

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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