{"id":16946,"date":"2022-05-27T06:48:00","date_gmt":"2022-05-27T10:48:00","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=16946"},"modified":"2023-02-09T11:05:36","modified_gmt":"2023-02-09T16:05:36","slug":"swing-trading-stocks-052722","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/swing-trading-stocks-052722\/","title":{"rendered":"The Wagner Daily &#8211; Nasdaq Composite Shows Buy Signal with 3% Rally, S&amp;P 500 &amp; Russell 2000 Close at Resistance"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527IXIC.png\" alt=\"$NASDAQ daily \" title=\"\"><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Wagner Daily &#8211; May 27, 2022<\/h2>\n\n\n\n<p><em>Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).<\/em><\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe now<\/a><\/strong> for your access to the best stocks for swing trading, proven Morpheus stock trading strategy, and market timing model with a 20-year track record. <\/em><\/p>\n\n\n\n<p><em>Just drop us a comment with any questions or comments&#8211;we&#8217;d love to hear from you!<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p><a><strong><em>MTG Market Timing Model &#8211;&nbsp; BUY as of 5\/26 close<\/em><\/strong><\/a><\/p>\n\n\n\n<p>Our timing model was designed to keep our trades in line with the prevailing market trend, not to call tops or catch bottoms in S&amp;P 500 or Nasdaq Composite.<\/p>\n\n\n\n<p><a><strong><em>today&#8217;s watchlist (potential trade entries):<\/em><\/strong><\/a><\/p>\n\n\n\n<p><img decoding=\"async\" alt=\"$todays watchlist\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527watch.png\" title=\"\"><br \/><br \/><a><strong><em>open positions:<\/em><\/strong><\/a><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/open.png\" alt=\"$open positions\" title=\"\"><\/figure>\n\n\n\n<p><strong><em>closed positions:<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2020\/closed.png\" alt=\"$closed positions\" title=\"\"><\/figure>\n\n\n\n<p><strong>po<\/strong><strong>sition notes:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No trades triggered.<\/li>\n<\/ul>\n\n\n\n<p><strong><em><strong><em><strong><em><a><strong><em>Commentary:<\/em><\/strong><\/a><\/em><\/strong><\/em><\/strong><\/em><\/strong><\/p>\n\n\n\n<p>Thursday&#8217;s 3% rally on higher volume produced a follow-through day buy signal on the Nasdaq Composite. The S&amp;P 500 did not follow through due to lighter volume but did manage to close above the 21-day EMA.&nbsp; A close 1% or more above the 21-day EMA would generate a buy signal &nbsp;the S&amp;P 500 (though the Nasdaq buy signal is enough to switch the timing model back to buy mode).<\/p>\n\n\n\n<p>Russell 2000 reclaimed the 21-day EMA but did not close 1% above.<\/p>\n\n\n\n<p>The daily charts of the S&amp;P 500 and Russell 2000 closed at resistance, so let&#8217;s see how these indexes react during the next few days.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527IXIC.png\" alt=\"$NASDAQ daily \" title=\"\"><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527SPX.png\" alt=\"$SP 500 daily \" title=\"\"><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527IWM.png\" alt=\"$IWM daily \" title=\"\"><\/figure>\n\n\n\n<p>The next few days and weeks should tell us more about the quality of Thursday&#8217;s follow-through.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can the Nasdaq Composite hold the rising 8-day ema?&nbsp; What about reclaiming the 21-day ema?&nbsp;<\/li>\n\n\n\n<li>A break of the follow-through day low within a day or two would be a bearish sign, as would any distribution.<\/li>\n\n\n\n<li>Do new breakouts extend from the pivot or fail?<\/li>\n\n\n\n<li>If breakouts stall and pull back in, do they hold up at support?<\/li>\n\n\n\n<li>Are new setups emerging after the first wave of breakouts?<\/li>\n<\/ul>\n\n\n\n<p>There is one new official setup for Friday. We have a buy limit order to enter $LTHM near Thursday&#8217;s close. We are going with a buy limit to prevent us from chasing a higher open if there is one.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527LTHM.png\" alt=\"$LTHM daily \" title=\"\"><\/figure>\n\n\n\n<p>Below are a few charts we are monitoring:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527ZIM.png\" alt=\"$ZIM daily \" title=\"\"><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220527LNTH.png\" alt=\"$lnth daily \" title=\"\"><\/figure>\n\n\n\n<p>For those new to the service, our system is based on trading growth stocks that can explode higher in a short period of time&#8230;when conditions are ideal. For most of 2022, conditions have not been ideal, so we have been playing the short side when setups are there while waiting for a new buy signal. Below are a few things we are looking for in a buy signal.<\/p>\n\n\n\n<p>Keys to market turning bullish:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buy signal in the timing model, such as a FTD (follow through day) or reclaim of 21-day EMA<\/li>\n\n\n\n<li>Stocks begin to breakout on volume and hold&#8230; indexes hold the 21-day EMA<\/li>\n\n\n\n<li>Number of stocks making new 52-week highs vs 52-week lows enters into positive territory<\/li>\n\n\n\n<li>After first wave of breakouts, new setups emerge<\/li>\n<\/ul>\n\n\n\n<p><strong>Unofficial Setups<\/strong> &#8211; For experienced traders only, no guidance is given for these setups.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&nbsp;Longs &#8211; $SBLK (over yest. high), $GFS (pullback near 50ma).&nbsp;<\/li>\n\n\n\n<li>\u00a0Shorts &#8211;<\/li>\n<\/ul>\n\n\n\n<p>See you in the chat room,<\/p>\n\n\n\n<p>Rick&nbsp;<\/p>\n\n\n\n\n\n\n\n<p>This list is a good starting point for monitoring the health of the market for those who have limited time.<\/p>\n\n\n\n<p><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\">https:\/\/morpheustrading.com\/services\/swing-trade-alerts<\/a><\/p>\n\n\n\n<p class=\"has-light-green-cyan-background-color has-background\"><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Start my Wagner Daily membership now<\/a><\/strong> to start receiving winning Morpheus stock trade signals, including a stock portfolio you can easily follow. <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">The Wagner Daily PRO<\/a> <\/strong>includes <strong>live swing trader room<\/strong> for daily, real-time trade ideas and powerful stock trading education. <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thursday&#8217;s 3% rally on higher volume produced a follow-through day buy signal on the Nasdaq Composite. The S&#038;P 500 did not follow through due to lighter volume but did manage to close above the 21-day EMA.\u00a0 A close 1% or more above the 21-day EMA would generate a buy signal \u00a0the S&#038;P 500 (though the Nasdaq buy signal is enough to switch the timing model back to buy mode).<\/p>\n<p>Russell 2000 reclaimed the 21-day EMA but did not close 1% above.<\/p>\n<p>The daily charts of the S&#038;P 500 and Russell 2000 closed at resistance, so let&#8217;s see how these indexes react during the next few days.<\/p>\n","protected":false},"author":2,"featured_media":12060,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[782],"tags":[],"class_list":["post-16946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wagner-daily-archives"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/16946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=16946"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/16946\/revisions"}],"predecessor-version":[{"id":16968,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/16946\/revisions\/16968"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/12060"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=16946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=16946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=16946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}