The Wagner Daily – $LTHM Misses Trigger: Update on Last Friday’s Setup

The Wagner Daily – May 31, 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 –  BUY as of 5/26 close

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:

Last Friday’s close was more than 1% above the 21-day EMA on the S&P 500 and Nasdaq Composite, which is another buy signal in addition to last week’s follow-through day in the Nasdaq.  We only use the 21-day ema on the S&P 500 and Nasdaq for our timing model.  The 20-day ema is used for stock and ETF analysis.  

There is quite a bit of overhead (resistance) on both charts below which could limit the upside, but as we know…anything can happen. No predictions here.

Last Friday’s official setup in $LTHM missed its trigger by a few cents. The reason why we went with a limit order slightly above the prior day’s close is that we were looking for a flat or slightly lower open. We thought about placing a buy stop above the prior day’s high, but the protective stop beneath the 2-day low would have been close to 12% (too wide).

With most stocks straight up the past few days, our weekly scans did not turn up many actionable buy setups.

We do have one new official entry in $GLNG over the high of last Thursday’s washout reversal candle.

$GLNG has formed a six-week-long and 22% deep base with a 99 relative strength rating from IBD. The industry group rank is 10 out of 197.

The stop is below Friday’s low, which is also below the 50-day MA.

There isn’t a lot out there in terms of high quality breakout setups, but we could see some 2-3 day pullback entries in energy later this week or early next week.

Below is quick guide of what we will be looking for this week:

• Can the Nasdaq Composite and S&P 500 hold the rising 20-day ema? A quick break below the 20-day EMA this week would be a negative sign.
• Avoid distribution days in the Nasdaq or S&P 500 (one may be ok, but two in one week would be a negative sign).
• How are recent breakouts working? Are they extending from the pivot or struggling?
• If recent breakouts pull back in, is the action constructive? Lower volume and not giving up much ground?

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

• Longs – $SBLK (over Fri high), $MOS (over 2-day high, patience required here so size small), $VERU buy stop 13.20, $CEIX – buy stop 55.00
• Shorts –

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.