The Wagner Daily – Impressive Volume for Stock’s 50-day MA Breakout

The Wagner Daily – July 8, 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, bought $LI

Commentary:

The Nasdaq Composite closed more than 1% above the 20-day EMA on Thursday, triggering a buy signal in our market timing model.  We are already long a few positions and plan to increase exposure as new setups develop.

Has the market bottomed out?   Maybe?  We can’t predict the future, but we can react to what is going on right now.  Market conditions have improved enough in the past few weeks to warrant more exposure.

How long will the rally last?  We never know.  We could see a multi-week or multi-month rally. 

Per intraday alert, $LI was added to the model portfolio. For those not already long, an entry at or below our entry is fine.  

There are two new setups for Friday in $SWAV and $PRVA. 

$SWAV took out the prior swing high but failed to follow through.  Since then, it has pulled back to and held support from the prior swing high and rising 10-day EMA.  Our buy entry is above Thursday’s close.  We’d like to have some exposure on close to the 10-day EMA and can add on strength.  

$PRVA has paused for a few days on a dry-up in volume and an explosive breakout above $30.  

The volume pattern in place since regaining the 50-day MA has been impressive with volume increasing on rallies and drying up on chop.  

Our entry is over the two-day high.

Other stocks in play –

$LNTH, $BZ, $UTHR, $PDD  – over prior day’s high 

$VRTX – buy on open, has broken out 

 $CHEF, $BMBL, $LRN also strong

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

• Longs – see above
• Shorts – none

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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