The Wagner Daily – Midcap Growth ETF $IWP Outperforms, Biotechs Lead Rally

The Wagner Daily -June 24, 2022

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MTG Market Timing Model –  SELL  (though conditions improving) 

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:

• $AMD short entry triggered. Per intraday alert, exited the position for a slight gain into the close due to strength in the broad market averages.

Commentary:

In our last report, we discussed the possibility of the S&P and Nasdaq pushing higher if they open and hold above Wednesday’s close, which is what played out with a nice push higher into the close.

Leading the current rally are biotechs ($XBI) and beaten-down growth stocks ($ARKK). Midcap Growth ETF $IWP is outperforming as well. The Nasdaq Composite and 100 are lagging just a bit. The S&P 500 is struggling, weighed down by the recent heavy selling in commodity-based stocks.

$IWP back through the 10-day EMA. 

Nasdaq is back above  the 10-day EMA, with the 20-day EMA and downtrend line above.  

Based on Thursday’s 1.6% gain on a slight pick up in volume, the Nasdaq Composite did print a follow-through day. However, we are waiting for a close back above the 21-day EMA in the Nasdaq to shift the timing model back into buy mode (we use the 21ema for market timing on the main averages only).  That being said, we are not waiting for a close back above the 21-day EMA before buying.   

Per intraday alert, we exited our $AMD short position for a very small gain due to the late recovery off the lows of the day and the overall strength in the market. If still short, look to exit as close to break-even as possible.

There are no new official setups for Friday, as there isn’t much out there in terms of low-risk buy points. However, we are monitoring a handful of stocks for entries on strength or weakness.

Unofficial Setups – For experienced traders only, no guidance is given for these setups.

• Longs – watching $JKS $ENPH $LI $VRTX $LNTH $HQY $UTHR
• Shorts – (none)

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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