The Wagner Daily – June 8, 2022
Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).
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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):
closed positions:
position notes:
- No trades triggered.
Tuesday’s bullish reversal action from a morning gap down saved the Nasdaq from a potential sell signal as the price recovered back above the 20-day EMA.
The morning gap down led to a gap-down reversal on the daily chart of $QQQ, which occurs when the price opens below the prior day’s low and then trades back through the prior day’s low and pushes higher.
Based on the reversal action, look for higher prices in the short-term with a possible overcut of the 50-day MA on the Nasdaq Composite and Nasdaq 100.
A break of Tuesday’s low within the next day or two would negate the reversal and likely lead to lower prices.
For those with little to no long exposure, buying or adding to $TQQQ over Tuesday’s high is an option.
$OPCH carries a 94 relative strength rating from IBD and is an unofficial setup based on Tuesday’s bullish reversal action off support of the downtrend line and 20-day ema. The two-day high is the trigger with a stop beneath the low of Tuesday’s reversal candle.
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 – $SPXL $TQQQ $OPCH
- 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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