The Wagner Daily – Small loss on $ZS, $CF add triggered, watching $MTDR for potential rebound

The Wagner Daily – February 7, 2022

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MTG Market Timing Model –  SELL

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 covered $ZS for a small loss.

Commentary:

Friday’s session was a positive one overall for the bulls as stocks could have easily rolled over after Thursday’s ugly down.  Let’s see if there is any follow-through to the upside this week.

Per intraday market, covered $ZS for a very small loss due to the lack of follow-through from our short entry. The $CF buy stop order triggered which was an add to a current position.

$MTDR’s false breakout and close near the lows of the day is known as a squat. Let’s see if the price can hold above Thursday or Friday’s low and work its way higher during the next few days.

Our weekend scans didn’t produce much in the way of low-risk buy setups in stocks near 52-week highs. However, we did see many bull flag-like patterns off lows that could be in play for a pop.

$ONON daily chart is a good example of bull flag like action off the lows (others $GDX $NVAX $SE $CROX $RIVN $RBLX $BNTX)

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

Depending on market conditions:

• Longs – $DWAC $CF $MTDR $DWAC $BG
• Shorts –

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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