The Wagner Daily – $VRRM Shakeout Fails, Watch for Range Bound Price

The Wagner Daily – July 19, 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 and bought $SWAV.
• Note the adjusted entry and stop prices to the $LNTH add.

Commentary:

The Nasdaq Composite stalled at the 50-day MA once again and failed to hold the morning gap, which led to a sharp selloff on volume. The price closed at the 10 & 20-day EMAs, but both moving averages are flat (MAs work better as support for longs when trending higher)  and located just above the midpoint of a month-long trading range…still a chop fest.

Not much progress in $ARKK either, unable to break through $46.

The charts above are clearly in chop mode and still can do anything. A clear break of the uptrend lines with at least three touches could spark the next selloff.

Monday’s selling hit many leadership stocks hard. Let’s see how they respond during the next few days. 

$LI triggered our add and sold off with the market. Ideally, we’d like to see the price action hold Monday’s close and work its way higher during the next few days.

$VRRM’s “shakeout to breakout” attempt failed on volume. Look for the price to chop around in a tight range during the next few days as a sign of strength. A break of Monday’s low with further weakness would be a negative.

As mentioned above, let’s see how leadership responds and go from there. 

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

• Longs – watching $VRRM $LRN $MCK $GTLB $FNKO $EVH
• 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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