The Wagner Daily – Shorting Financials with $FAZ ETF

The Wagner Daily – March 15, 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:

• $CPRI short entry triggered.

Commentary:

Big cap tech and growth continue to lead to the downside with $ARKK and $QQQ down -6% and -2% respectively.  $QQQ took out the low of the big reversal candle on February 24, and by doing so set another lower low.  

Any bounce in $QQQ would be welcomed for new short setups.  

Financials may be in play on the short side with $XLF stalling at a big support level that is now resistance. For those trading IRA accounts, the 3x Financial Bear ETF $FAZ is buyable if/when $XLF takes out Monday’s low. 

This is not an official setup but maybe something we add to the portfolio via an intraday alert.

The $CPRI short setup triggered on Monday and was added to the model portfolio.

$BURL is another retail-based setup that struggled a bit on Monday but could be in play as a short beneath the two-day low.

This is not an official setup.

For all you  CANSLIM / IBD style traders out there, let’s continue to remain patient as every bear market eventually turns into a new bull with a ton of opportunities. For those not interested in the short side, there is nothing wrong with sitting in cash and waiting for better days.

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 condtions 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 are look for in a 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 –
• Shorts – enrtries below prior day’s low $BURL $DOCU $XLF $APTV

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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