The Wagner Daily – Nasdaq Shows Bullish Divergence

The Wagner Daily – October 12, 2022

Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).

Subscribe now for your access to the best stocks for swing trading, proven Morpheus stock trading strategy, and market timing model with a 20-year track record.

Just drop us a comment with any questions or comments–we’d love to hear from you!

---

MTG Market Timing Model –  SELL  

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:

• No trades triggered.

Commentary:

Stocks saw a volatile session on Tuesday with three swings of roughly 2%  intraday in the Nasdaq Composite before the index settled at -1.1%.

The Nasdaq Composite is approaching support from the 61.8% Fibonacci retracement level measured from the covid low of 2020 to the high of 2021, which could lead to a short-term bounce.

One positive to take away from the recent move to new lows in the Nasdaq Composite is the bullish divergence in the number of stocks setting new 52-week lows (the red histogram is the net number of 52-week highs minus 52-week lows).  Although good to see, it’s tough to get excited about the market until the number of new 52-week highs pick up. 

Cash remains the best option for us right now, as we would prefer some sort of bounce in the broad-based averages to produce better short entries.

There is nothing to do on the long side until a clear buy signal emerges in the S&P 500 or Nasdaq Composite. 

With almost all industry groups setting new lows with the market, there isn’t much out there that is holding up other than energy and a handful of names we are monitoring.

The charts below are not official setups, as we are just noting strength in an ugly market.  

We never know when the market will bottom, which is why it’s important to always keep an updated watchlist of stocks showing strength so that we are ready to go if/when conditions turn bullish.

 Unofficial Setups –

• Longs – none (waiting for a clear buy signal)
• Shorts – none (need a bounce in the market)

See you in the chat room,

Rick 

Start my Wagner Daily membership now to start receiving winning Morpheus stock trade signals, including a stock portfolio you can easily follow. The Wagner Daily PRO includes live swing trader room for daily, real-time trade ideas and powerful stock trading education.