The Wagner Daily – Finding an Inside Candle for Biotech Swing Trade Setup

The Wagner Daily – July 10th, 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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open positions:

closed positions:

position notes:

• Per intraday alert, added to $LI
• Sold 1/4 of $XBI into strength for an 8.6% gain.
• $PRVA and $SWAV buy stops triggered.

Commentary:

Our timing model is back in buy mode after last week’s close above the 20-day EMA on the Nasdaq Composite.   

As mentioned in last Friday’s report, we never know how long a rally will last.  Our job is to judge the price and volume action on a daily basis and react accordingly, adding exposure as positions work and backing off if they fail.  

The Nasdaq Composite closed at the prior swing high and 50-day MA.  Let’s see if the price can punch through resistance and set a clear higher high.  

The model portfolio added two new positions on Friday ($PRVA and $SWAV) and added to an existing position in $LI.   Per intraday alert, sold 1/4 of $XBI into strength.  The plan with the remaining position is to sell into strength at $90 or higher, or exit on a break of the rising 10-day EMA (whichever comes first).  

Before we add more exposure, we’d like to see recent buys follow through to the upside.  

There are a few stocks in play this week for those who are looking to add more long exposure (see unofficial watchlist below).

$ITCI is a biotech with triple-digit sales growth that is trading just below its all-time high.  The daily chart is in play (unofficial) over last Friday’s high or over the range high.  

Inside candle last month 

$LNTH moved out above $65 on a pick-up in volume from last Friday’s unofficial watchlist. 

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

• Longs – $BMBL $PDD $ITCI $ZLAB $PRVA $GTLB (all in play over Friday’s high)
• Shorts – none

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See you in the Live Trading Room

Rick 

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