The Wagner Daily – Small Cap Growth ETF $IWO Reclaims 50-Day MA

The Wagner Daily – July 20, 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:

• LI stops triggered and we are out.

Commentary:

The health of the current rally improved on Tuesday with the Nasdaq Composite reclaiming the 50-day MA on a pick-up in volume. Tuesday’s breakout above range highs takes the Nasdaq out of chop mode and into trend mode with a higher high and higher low in place.

Small cap growth ETF $IWO also reclaimed the 50-day MA.

The model portfolio stopped out of $LI after a nasty two-day shakeout. If the price can recover back above the 20-day EMA and hold, then we will look to re-enter if/when the price tightens up.

Based on Tuesday’s bullish price and volume action in the main indices, we have a few new setups on Wednesday’s watchlist.

First up is a breakout entry over the two-day high in $ENPH. Note that we are going with a tight stop as the trade should work out right away with earnings next week. Our goal is to hold through earnings if we have a decent profit buffer of 5-8% or more heading into the report.

$MCK has held up really well the past few months with the price undercutting and closing back above the 50-day a few weeks ago. We like to price action tightening up from left to right on the daily chart. Our plan is to enter over Tuesday’s high.

The last setup is a potential add to $LNTH (no chart listed). There are two entries, a buy stop on strength or buy-limit on weakness. Whichever setup triggers first is the official entry (cancel the other setup).

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

• Longs – watching  $MCK $GTLB $ENPH $EVH $HRMY $VRTX $SWAV $LI $CELH
• 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.

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