The Wagner Daily – Short side trading update and watchlist

The Wagner Daily – March 8, 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):

open positions:

closed positions:

position notes:

• Per intraday alert, covered half of $AMC.

Commentary:

Monday proved to be another wild ride in stocks, as the Nasdaq 100 futures contract recovered from a -2% selloff overnight and opened slightly higher than Friday’s 4 pm close. However, the pre-market rally stalled on the open and reversed lower, giving back the entire 2% bounce by 11:00 EST.

$QQQ sliced through support and closed -3.7% lower.

S&P 500 closed at -3% but did not slice through support like $QQQ.

Per intraday alert, covered half of $AMC for an 8% gain and will likely cover the rest on further weakness. We are still short $QQQ through the inverse $PSQ and will also look to cover into weakness.

Our nightly scan work failed to produce actionable setups on the short side, which isn’t much of a surprise after the past few days of selling.

For those who are trying to learn the short side, continue to monitor short setups on the unofficial watchlist. For example, $TPX was on the list last week due to the tight-ranged session at the prior high and declining 8-day EMA. We also posted a few setups in last night’s report.

Our short-term plan is to manage existing short exposure by taking profits into weakness. There are no new official setups for Tuesday.

Keys to market turning bullish:

• Buy signal in the timing model through a FTD or reclaim of 21-day EMA
• Stocks begin to breakout on volume and hold… indexes hold the 21-day EMA
• Number of stocks making new 52-week highs vs 52-week lows enters into positive territory
• After the first wave of breakouts, new setups emerge

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

• Longs – (none for now)
• Shorts – maybe $INTC $RIOT $LCID (below prior day’s low) not ideal shorts at this time

See you in the chat room,

Rick 

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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