The Wagner Daily – $CNX on the Rise: 7-Week Cup Breakout Potential

The Wagner Daily – June 3, 2022

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MTG Market Timing Model –  BUY (SP-500 and Nasdaq above 20ema on daily)  

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 a 5% position in $TQQQ.

Commentary:

Stocks pushed higher on lighter volume after a two-day pause.

Per intraday alert, we bought the leveraged Nasdaq 100 ETF $TQQQ to take advantage of the bull-flag-like action on the daily chart of the Nasdaq 100 futures.

There are two new setups on Friday’s watchlist.

First up is a potential breakout from a 7-week long cup in $CNX. We like the tight-ranged price action on Thursday just below the base high. Our buy stop entry is $23.

$PSTG’s big volume gap up post-earnings is a positive sign for growth.

The gap up reclaimed the 200-day MA, but there is resistance from the 50-day MA just above. However, we don’t mind taking a small starter position here to see what develops over the next week or two.  The number of funds that own $PSTG has increased in the last few quarters which is impressive given the overall weakness in growth.  

Below is a 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 – $NFE (breakout) $PLUG (off lows over yest high)
• 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

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