Category: The Wagner Daily – Archives

The Wagner Daily – February 28, 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. […]

Given that the market is extended to the downside and potentially gapping 2-3% lower, there are no new setups for Thursday. As mentioned above, if the gap holds, given the extreme weakness we could see a gap down reversal type day.

If there is some strength, $DOCS may be in play above Wednesday’s high.

Just to be balanced, here are a few longs to watch.

$DDOG is still in pretty good shape and could be in play IF the market reverses higher.

$DDOG stop triggered and we are out with a 6% loss on a half position. Although we took a few small losses on the long side the past few weeks, the model portfolio is positioned well should the market continue to sell off.

As for the long side, there isn’t much to do, especially if shorts are working. Gold ETF and gold stocks have been strong as of late but are not actionable right now. $RTX is one of the better-looking charts out there near highs but we are just monitoring for now.

Thursday’s selloff in the major indexes increased the odds of the trend reversing lower after a few weeks of higher prices. The Nasdaq 100 set a second lower high on Thursday and is close to printing a second lower low. The same goes for the S&P 500, which has once again joined the Nasdaq 100 below the 200-day MA.

As of this writing, both the S&P 500 and Nasdaq 100 futures were trading roughly +0.8% higher. If these prices hold up through Friday’s open, then we may be able to short into strength via an intraday alert.

$GTLB could be in play over Wednesday’s high for a quick pop based on the tight trading range above the 20-day EMA. This is not the type of setup we look to play in a strong market, as our focus is generally on stocks within 20% of a 52-week high.

Not an official setup.

There are two new official buy setups for Tuesday looking to play stocks that are showing strength.  

$DLTR reclaimed the 50-day MA last week and is now in pullback mode. Monday’s reversal candle is a buy signal, with the entry over Monday’s high. The stop is below the reversal candle low.

Only 8% off the 52-week high with a group rank of 53 of 197 groups

12-month RS 93, 3-month RS 85

Not shown is the relative strength line which is almost to new highs ahead of price.

Other than oil and a few fertilizer names there isn’t much to do on the long side.

As for shorts, our weekend scans did produce a few setups but they are not official.

Both charts below are consolidating near the lows and may soon be headed much lower if market conditions remain weak.

Friday’s action was pretty tight on the daily which makes for low-risk entry points below the prior day’s low. Watch out for false triggers on the open if the price opens below the prior day’s low.

The video below replaces the written commentary portion of today’s report.  If the video does not appear or does not play then copy and paste the following link to view directly on youtube.com:

Our nightly scans did not turn up many actionable setups, though we did find a handful of energy stocks with NR7-type action after a pause or pullback. $PXD, $CLR, $SLB, and $VLO are a few that could be in play.  

We do have one new official setup in $PXD.  Earnings are 2/16 but we will hold through the report if we have a decent buffer.