The Wagner Daily – Watching $AMPH: Potential Buy Point in Cup with Handle Formation

The Wagner Daily – June 7, 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:

• $CNX and $PTEN buy stops triggered.

Commentary:

There isn’t much to report from Monday’s session, as broad-based averages remain in chop mode. Although the S&P 500 and Nasdaq Composite closed in positive territory, the close was well off the highs of the session after a failed attempt to move higher.  Since volume,  was higher on the NYSE and Nasdaq,  Monday’s action could be a sign of stalling (though not a clear cut distribution day). 

$CNX and $PTEN buy stops triggered bringing the portfolio to 4 open positions. 

$CNX closed higher on a pick-up in volume but still needs to clear the base high.

$PTEN triggered its buy stop and reversed lower. The good news is that volume was light.

$AMPH is forming the handle portion of a cup with handle pattern and is worth watching for a buy point, such as a reversal candle off the 20-day EMA or a break of the downtrend line in the handle.

This is not an official setup.

There are no new official setups for Tuesday, as we’d like to see current positions push higher before adding new exposure.

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 – $CEIX (over prior day’s high)
• Shorts – watching $APPS $SARK (inverse) $UPST SHOP $DKNG

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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