The Wagner Daily – Nasdaq Volatility and Support Level Concerns

The Wagner Daily – March 9, 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:

• Sold $PSQ to lock in gains.
• Covered last half of $AMC into weakness for a 16% gain.

Commentary:

For the second day in a row, volatility was very high with a daily trading range of nearly 4%  on the Nasdaq Composite. At one point, there was a powerful +3.8% surge off the day’s low that stalled at the prior swing low from January. However, once that move lost steam the price reversed lower and sold off -2.8% into the close.

The daily chart of the Nasdaq could be in for some trouble unless it can reclaim the 13,100 level and hold.

The volatility in the major averages forced us to take profits on the last half of the $AMC short into weakness for a 16% gain. We also stopped out of $PSQ with a small gain. Overall, it was a decent day as we were able to book some profits in an ugly market and move to a 100% cash position.

In last night’s report, we mentioned that actionable short setups have dried up and that is the case once again for Wednesday’s session. We are content to sit in cash and wait for new setups to emerge, long or short.

For those who are new to the service, our system is based on trading growth stocks that can explode higher in a short period of time…when conditions are ideal. For most of 2022, conditions have not been ideal, so we have been playing the short side when setups are there while waiting for a new buy signal. Below are a few things we look for in a quality buy signal.

Keys to market turning bullish:

• Buy signal in the timing model, such as a FTD (follow through day) 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 first wave of breakouts, new setups emerge

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

• Longs – watching solar stocks $TAN $JKS $ENPH $SEDG and a few others
• Shorts – running on fumes with regards to setups here..maybe $NTAP beneath the 2-day low

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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