The Wagner Daily – June 10, 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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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.
- Per intraday alert, sold $CNX at breakeven and stopped out of $TQQQ and $PTEN.
The S&P 500 and Nasdaq Composite S&P 500 sliced through the 20-day EMA on a pick up in volume ahead of Friday’s big CPI report at 8:30 am EST. The heavy selling was the third distribution day for the Nasdaq since the 5/26 follow-through day.
With the Nasdaq and S&P below the 20-day EMA, the timing model will be back on a sell unless the main averages can reclaim the 20-day EMA within the next day or two.
Popular sector ETFs $XLK, $XLV, $IBB, $XLB, $SMH, and $XLF all closed below the 20-day EMA as well.
Once a follow-through day prints, it’s our job is to monitor the market for clues and acct accordingly. Below are a few of the questions we ask daily/weekly.
- Can the Nasdaq Composite and S&P 500 hold the rising 20-day ema? – so far no!
- Avoid distribution days? No again, with 3-4 on the Nasdaq
- How are recent breakouts working? Aside from energy, ugly!
- Is leadership expanding? No. Just the opposite, with shipping stocks breaking down and $MOS/$CF breaking the 50ma.
The model portfolio is back to 100% cash after stopping out of $TQQQ, $PTEN, and $CNX.
There are no new setups for Friday. Let’s see how the market reacts to the CPI number. If conditions remain weak, then we will wait for a bounce to add some short exposure.
Unofficial Setups – For experienced traders only, no guidance is given for these setups.
See you in the chat room,
This list is a good starting point for monitoring the health of the market for those who have limited time.
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