The Wagner Daily – Healthcare Leader: $LNTH Surges w/ Strong Chart, Earnings 7/27

The Wagner Daily – July 18, 2022

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MTG Market Timing Model –  BUY  –

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, added to $LI.

Commentary:

After two days in a row of buying on weakness, stocks finally pushed higher on Friday with solid gains of roughly +2% in many broad-based averages. Overall, last week’s trading was positive with buyers stepping in to defend the higher lows in place from late June / early July.

Nothing changed technically last week, as the Nasdaq Composite is still in chop mode. A close above the range high this week would confirm the higher low on the weekly and reclaim the 10-week MA.

Healthcare is leading the market higher and $LNTH is one of the better-looking charts in the sector. Its 20% deep and 6-week long base is a great look in this market. The relative strength line vs the S&P 500 is already at new highs and the IBD relative strength ratings are solid.

We plan to add over the base high. Earnings 7/27.

Per intraday alert, added to $LI based on Friday’s bullish reversal action off the lows. The current consolidation is extremely tight given the explosive move up.

There are two buy points we are monitoring. The first is over the 3-day high and downtrend line (not an official entry). The second is over the midpoint of the consolidation, where we plan to add to our position. Reports August 9.

$SWAV is an official buy over Friday’s close, looking for the $200 level to hold. Friday’s action cleared the swing high and the downtrend line. Volume picked up but was below average.

The 50% correction off the high is not ideal but fine during a bear market.  Reports August 8.

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

• Longs – breakouts $SWAV $UTHR $VRTX $LNTH move off the lows – $OKTA, $AFRM,
• Shorts –

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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