The Wagner Daily – $PTEN and $CNX: Official Setups with Constructive Pullback Action

The Wagner Daily – June 6, 2022

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

• Canceled the $PSTG setup.

Commentary:

Broad market averages failed to follow through on Thursday’s strength but did close out the week just above the rising 20-day EMA. Our plan is to operate with a short-term bullish bias as long the price holds the 20-day ema on a closing basis.

$CNX remains on the watchlist from last Friday.

Please note we canceled the $PSTG trade in favor of an energy-based stock trading near highs ($PTEN).

Along with $CNX, $PTEN is an official setup.

We like the constructive action on the pullback to support from the base high and rising 8-day EMA. Our buy stop is over last Friday’s high with a stop beneath last week’s low.

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 – $CLR and $RRC are also pullback entries like $PTEN, $NFE – buy at 50.00, $PLUG buy at 18.60 (bounce off lows) – also watching $ASH, $ZIM, $OGN
• 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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