The Wagner Daily – Late Friday Gains: How $DVN Broke Its Downtrend

The Wagner Daily – October 24, 2022

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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:

• Per intraday alert, bought $DVN and $SSO.

Commentary:

Stocks closed out last week’s trading with a solid trend day to the upside. The S&P 500 and Nasdaq Composite both gained roughly 2.3% as volume increased, generating a follow-through day buy signal.  Along with the follow-through day, the S&P 500 also closed by 1% or more above the 21-day EMA, which is another buy signal.  

Per intraday alert, we added some long exposure to the S&P 500 late Friday afternoon after the price took out last Thursday’s high, creating an outside day (outside day – today’s high is higher than the prior day’s high and today’s low is lower than the prior day’s low).  We bought a half position in the 2x leveraged S&P 500 ETF $SSO.   

Late Friday afternoon, with the timing model working towards a buy signal, we also purchased oil and gas stock $DVN over the prior day’s high based on a downtrend line break.  

After several failed attempts, the price finally closed above the downtrend line on a pick-up in volume. 

Although conditions are improving and we now have a buy signal, money is still flowing into non-growth stocks, which is a concern.  

A few megacap leaders report this week : 10/26 – $META , 10/27 – $AAPL $AMZN 

There are no new official setups for Friday.  However, stay tuned for intraday alerts if any new setups are triggered.

Unofficial Setups –

• Longs – $SRPT $FRO $JACK $RBLX $YELP
• Shorts –

Rick 

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