The Wagner Daily – Small-Cap $IWM & $TNA Swing Trade Watch

The Wagner Daily – May 24, 2022

Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).

Subscribe now for your access to the best stocks for swing trading, proven Morpheus stock trading strategy, and market timing model with a 20-year track record.

Just drop us a comment with any questions or comments–we’d love to hear from you!

---

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:

• One new official setup in $TNA

Commentary:

Stocks continued to push higher on Monday following last Friday’s bullish reversal.

As of this writing, the S&P 500 and Nasdaq 100 futures were -0.8% off Monday’s close.

If the S&P 500 futures hold ground overnight, then that wouldn’t be too bad of a gap and one the price could recover from. 

Small-Cap Russell 2000 index ETF $IWM closed with a tight-ranged inside day and is potentially in play for a swing over the two-day high. Note the higher low that is in place vs a lower low in the S&P or Nasdaq.

Rather than buy $IWM, we have a buy stop in $TNA (3x leveraged small cap) for a quick swing trade (see trade details above).

Semiconductor ETF $SMH also showed relative strength last Friday by putting in a higher low on the daily chart. $SMH is potentially in play for a swing over the two-day high. 

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.  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 – $ALB buy stop 244.00, $GFS buy stop 55.21, off lows – $DWAC $DKNG both entries above yest. high
• Shorts – none, index near lows

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

Start my Wagner Daily membership now to start receiving winning Morpheus stock trade signals, including a stock portfolio you can easily follow. The Wagner Daily PRO includes live swing trader room for daily, real-time trade ideas and powerful stock trading education.