The Wagner Daily – $HRMY Forms Flat Base for Potential Breakout

The Wagner Daily – August 09, 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 along with open and closed positions:

position notes:

• $EVH buy stop triggered.

Commentary:

The Nasdaq Composite stalled after taking out the two-day high and reversed lower, closing in the bottom 20% of the day’s range on a pick-up in volume. The bearish reversal action / weak close suggests the trend is losing steam. Monday’s weakness should be confirmed by a lower close on Tuesday.

A break of Monday’s low (on the chart above), with follow-through, would likely spark a short-term pullback in the major averages. How leading stocks near 52-week highs react to the potential selling should provide us with more clues as to the health of this rally. Will leadership take over when stocks bouncing off lows run into heavy resistance and stall? 

$EVH triggered and was added to the model portfolio.

There are no new setups for Tuesday.

After a failed breakout attempt at new highs from a cup with handle pattern, $HRMY has formed a 5-week long flat base (only 15% deep) above the rising 50-day MA. If market conditions do not deteriorate and $HRMY holds the 50-day MA, then it may have a shot of breaking out down the road.

This is not an official setup.

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

• Longs –  markets extended, setups drying up
• 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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