The Wagner Daily – $XBI Bulls Reversal, Add Back Position

The Wagner Daily – July 13, 2022

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MTG Market Timing Model –  BUY  – weak signal so far, with little follow-through in leading biotech names

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:

• Per intraday alert, sold $LI to reduce risk due to price losing the 10-day EMA this week.

Commentary:

Broad market averages chopped around in the morning and early afternoon before selling off sharply into the close. The Nasdaq Composite and S&P 500 both gave back roughly -1%. However, volume was lighter on the Nasdaq for the second day in a row while NYSE volume increased.

Can the Nasdaq recapture the 20-day EMA? If not, then it may be headed for more chop.

Many recent breakouts in biotech stocks have failed to impress, forcing our exposure down to 10% in the model portfolio.

Per intraday alert, $LI was also sold to reduce risk but could be back in play soon.

$XBI closed with a bullish reversal candle and is in play over Tuesday’s high. This is an official entry with a buy stop looking to add back the 2% position we stopped out of on Tuesday.

Let’s see how the market opens up with the July 13 CPI number hitting the market at 8:30 am.

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

• Longs – watching $PRVA $TMDX $ZLAB $LI
• Shorts – $MCK $

See you in the chatroom,

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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