The Wagner Daily – Market Update: Bouncing Higher & Monitoring $CC Stock

The Wagner Daily – May 11, 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:

• Stopped out of $USO.

Commentary:

Not much changed on Tuesday, with the Nasdaq Composite trading inside the prior day’s range. The S&P 500 tried to reverse higher in the afternoon but stalled and closed in the bottom 40% of the day’s range.  

If the market is to bounce higher, then we should see decent short setups emerge later this week.

There isn’t much to do on the long side other than continue to monitor stocks with relative strength.

Speaking of relative strength, $CC has held up well since the gap. Tough to buy this stock under current market conditions.

The chart below is of $MDB from 2020 and is a good example of what to look for when the market bottoms. Although one could have bought the first pullback from a strong thrust off the lows in April, waiting for the for the price to clear the 50-day moving average and then tighten up is ideal for what we do. By the time the price recovers the 50-day MA, a higher high and higher low is already in place with the 20-day EMA above the 50-day MA.

Due to the lack of setups on either side of the market we are content to sit in cash.

• Longs – just watching $CC $PPC $KMB $KR
• Shorts – $INTC $CSCO (below prior day’s 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.

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