The Wagner Daily – $FB Soars 18% After Earnings: Short-Side Potential

The Wagner Daily – April 28, 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:

• No trades triggered.

Commentary:

Although Wednesday’s close was in the bottom third of the day’s range, the market did try to push higher before selling off which suggests the downtrend is tiring out.  If Thursday’s price action can open and hold above Wednesday’s close, then we’d look for a possible reversal to the upside on a breakout above Wednesday’s high.

With most broad market averages down 7-8% during the last week and a half, there isn’t much out there in terms low-risk swing setups on the short side. As such, there are no new setups for Thursday’s session.

As for potential longs, we are in no hurry to add long exposure in a market where very few buy setups are working.

Below are a few unofficial short setups that could be in play on a bounce.

$V gapped higher after earnings but stalled at the 200-day MA. This was the second stall at the 200-day MA in two weeks. Look to short on a ounce into the 200-day MA.

$FB is up 18% in after-hours trading after reporting earnings. Could be in play on the short side looking for the price to stall at the 50-day MA and reverse lower.

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

• Longs –
• Shorts – $V $FB (potential failed gap ups)

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.

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