The Wagner Daily – Stocks Digest Trend-Day Down

The Wagner Daily – May 20, 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, bought $AFRM for a short-term pop (20-30% target).

Commentary:

Stocks chopped around in a fairly tight session on Thursday digesting the prior day’s trend-day-down. Let’s say the market is able to push higher from Thursday’s weak close, there isn’t much real estate out there before running into resistance from downtrend lines and declining 20-day EMAs.

$XLF is stuck in a downward trending channel.  

Energy stocks have struggled to make much progress the past few weeks. The line on close chart of $XLE shows the top trendline acting as resistance after every new high.

Per intraday alert, we bought back in $AFRM after it undercut the prior day’s low and reversed back through the original breakout pivot at $25.52. Our stop is beneath Thursday’s low with a target of the 50-day MA.

The short-term game plan is to remain mostly in cash while we wait for new short setups to develop. Have a great weekend!

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 are looking 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 – none
• Shorts – $FB below yest 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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