The Wagner Daily – February 24, 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 – 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):
closed positions:
position notes:
- No trades triggered.
Stocks picked up momentum to the downside on Wednesday with several broad market averages closing -1.8% to -2.8% lower.
The Nasdaq 100 and Nasdaq Composite closed below the prior swing low but the S&P 500 closed just above. However, as of this writing, Nasdaq 100 and S&P 500 futures are trading -2.5% below Wednesday’s close. Unless the market recovers overnight, such a large gap could lead to a gap down reversal day, where the price opens significantly lower but recovers and pushes higher the rest of the session.
For those who are still short, a break of a major swing low after a two-week-long selloff is an ideal spot to cover positions and lock in gains.
There were no new official setups on Wednesday, but $TXG, which was on the unofficial short watchlist closed 7% below the trigger point (2-day low). For those who are active traders, the unofficial watchlist is a good place to start for ideas, but our live trading room in slack offers a ton of value for its price (only $25 a month if paying for a full year at $299).
Given that the market is extended to the downside and potentially gapping 2-3% lower, there are no new setups for Thursday. As mentioned above, if the gap holds, given the extreme weakness we could see a gap down reversal type day.
If there is some strength, $DOCS may be in play above Wednesday’s high.
There isn’t much out there in terms of high-quality long setups which shouldn’t be a surprise after a two-week selloff in the market. If the market does reverse higher, the biggest movers will likely come from stocks bouncing from oversold levels.
Market conditions remain ugly for growth and momentum stock trading. At some point, the market will bottom out and generate a buy signal and growth will come back. It always does. For now, we are just trying to go with the flow and take whatever the market gives.
Unofficial Setups – For experienced traders only, no guidance is given for these setups.
- Longs – DOCS > 57.00 or on a gap down reversal
- Shorts – none
See you in the chat room,
Rick
https://morpheustrading.com/services/swing-trade-alerts
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