Category: The Wagner Daily – Archives

We will look to re-enter $DOCN within the next few days, especially if it touches the 20-day EMA and forms some sort of reversal candle.

We like $QQQ as a short entry on a break of Friday’s low, with a target of the recent swing low. Rather than short $QQQ, we are buying the 3x inverted $SQQQ with a buy stop limit order. See the watchlist above for trade details.

Midcap Growth ETF $IWP also stalled at the 20-day EMA and closed below the 10-day EMA. Other growth-based ETFs $FFTY and $ARKK also look vulnerable to further selling in the short term.

Stocks rallied on a pick up in volume with some interesting action in leading stocks ($AFRM $MRVL $NET). The Nasdaq Composite and S&P 500 recovered from a lower open and closed near the highs of the session. Both indices are on day 2 of a new rally attempt, which makes Friday (day 4) the earliest that we could see a follow-through day (FTD).  A FTD is a 1.5% gain in the S&P 500 or Nasdaq accompanied by higher volume.  If no FTD prints, then two consecutive closes above the 20-day EMA  would generate a buy signal.  

$AFRM closed with an inside day at the 20-day EMA. A move through Tuesday’s high would also put the price back above its 10-day EMA.

In last nights report, we discussed Friday’s bullish reversal action in the Nasdaq Composite as day one of a new rally attempt. The rally didn’t last long, as the Nasdaq erased Friday’s reversal candle low and closed -2.1% lower.

There is a cluster of support in the 14k – 14,180 range from prior base highs, the 200-day MA, and the July 19 low.

The S&P 500 and Nasdaq Composite both closed with a bullish reversal candle last Friday after undercutting the prior week’s low. The reversal counts as day one of a new rally attempt. Wednesday is the earliest we could see a follow-through day buy signal, which occurs on day four or later of a new rally attempt.

The Wagner Daily – October 1, 2021 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. […]

Watching $VXX on an hourly chart can be helpful during a correction. After a sharp spike up in $VXX during a market selloff, look for the volatility to settle down followed by a break down below the 20-period EMA. The break of the 20ema can serve as a buy signal to enter stocks/test positions. Currently, $VXX is sitting on top of a rising 20-period EMA (suggesting higher prices), so the S&P is vulnerable to further selling.

All major indices we follow sliced through the 50-day MA on higher volume, increasing the odds of more sideways to lower price action during the next few weeks.

The good news is that most indices are already in week four of a correction which we need to reset patterns.

The weekly chart of the S&P 500 is at the 20-week EMA and may need to undercut last week’s low to produce a bottom. This is a guess, as it could dip all the way down to the 40-week MA or more (we never really know where/when a market will bottom out).

Sticking with the semi theme, $NVDA pulled back to the 10-week moving average on Monday and is in play around Monday’s close,  with a stop beneath last week’s low.