Category: The Wagner Daily – Archives

Our weekend scans didn’t turn up much on the long side.  There is one new official setup below on the short side along with a few more on the unofficial watchlist at the bottom of the report.  

$CPRI recently sliced through the 50ma on heavy volume. We like the tight price action after the sharp sellof, which is still below the declining 8-day EMA. Friday’s tight-ranged session is our short signal with the two-day low as the entry.

This is an official setup.

What next?  As of this writing, Nasdaq futures are +1% higher in pre-market trading.  While it looks like the charts above could bounce for a few days, the big question is can they reclaim the 20-day EMA… and hold?  

As for new setups, there are no new official entries for Friday.  Unofficially, stocks such as $SG, $MATX, $PSTG, $GSL, $DAC, $GOGL, and $RS are potentially in play on strength.  

SG is in pause mode after a strong thrust off the lows and is in play unofficially over Thursday’s high with a tight stop (3-4% below entry).  Should go if it triggers.  If not, exit, and wait for re-entry.

There are no new official setups for Thursday’s session. Below are a few of the better-looking patterns near highs out there. There a no short setups yet, but that could change within the next day or two.

$VRTX relative strength line breakout

For the second day in a row, volatility was very high with a daily trading range of nearly 4%  on the Nasdaq Composite. At one point, there was a powerful +3.8% surge off the day’s low that stalled at the prior swing low from January. However, once that move lost steam the price reversed lower and sold off -2.8% into the close.

The daily chart of the Nasdaq could be in for some trouble unless it can reclaim the 13,100 level and hold.

Per intraday alert, covered half of $AMC for an 8% gain and will likely cover the rest on further weakness. We are still short $QQQ through the inverse $PSQ and will also look to cover into weakness.

Our nightly scan work failed to produce actionable setups on the short side, which isn’t much of a surprise after the past few days of selling.

For those who are trying to learn the short side, continue to monitor short setups on the unofficial watchlist. For example, $TPX was on the list last week due to the tight-ranged session at the prior high and declining 8-day EMA. We also posted a few setups in last night’s report.

On the long side, most oil names are too extended to be in play. Defense stock $RTX has pulled back off the highs after a strong breakout and is potentially in play for a swing trade over last Friday’s high or on a gap-down reversal entry if Monday’s open is below Friday’s low. This is not an official setup.

Thursday turned into a wild ride in the Nasdaq 100 futures, starting with a strong morning session that opened roughly 1% above the prior day’s close on the Nasdaq 100 index. The chart below details the action that led to a 4.5% selloff from the pre-market high to the post-market low (as of this writing) in the Nasdaq 100 futures.

There is one new official buy setup for Thursday’s session in $LYV.

$LYV has no earnings growth but has three quarters in a row of +600% sales growth along with a yearly eps esimate of $1.53 for 2023, which is a 189% increase. We like the consolidation near the highs with the price action setting higher lows in February vs lower lows in the S&P 500. The relative strength line has already set a new high ahead of price (a bullish sign). The recent breakout led to a shakeout down to the 20 and 50-day MAs, where the price found support. We have a buy stop to enter over Wednesday’s high, which would put the price back above the $121.50 breakout area.

$LYV’s group is ranked 28 of 197. Its 12-month RS rating is a solid 95. The accumulation/distribution rating by marketsmith is a D+, which isn’t ideal. However, it’s showing a ton of relative strength in a strong group.

$CARG could be in play on the first touch of the 20-day EMA on the 60-minute chart after an explosive move up. The initial gap was confirmed by big volume.

The model portfolio remains long a 5% starter position in $DDOG but will look to add long exposure as new setups develop.

$DAC pulled back to the 20-day EMA and found support with two bullish reversal candles over three sessions.

Not an official setup