{"id":17386,"date":"2022-07-10T06:48:00","date_gmt":"2022-07-10T10:48:00","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=17386"},"modified":"2023-02-15T01:12:46","modified_gmt":"2023-02-15T06:12:46","slug":"swing-trading-stocks-template-4","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/swing-trading-stocks-template-4\/","title":{"rendered":"The Wagner Daily &#8211; Market Update: Strong Reversal Rally"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220225IXIC.png\" alt=\"$Nasdaq COmposite Daily\" title=\"\"><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Wagner Daily &#8211; February 25, 2022<\/h2>\n\n\n\n<p><em>Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).<\/em><\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe now<\/a><\/strong> for your access to the best stocks for swing trading, proven Morpheus stock trading strategy, and market timing model with a 20-year track record. <\/em><\/p>\n\n\n\n<p><em>Just drop us a comment with any questions or comments&#8211;we&#8217;d love to hear from you!<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p><em>The Wagner Daily &#8211; February 25, 2022<br \/>Proven swing trading strategy, top ETF &amp; stock picks, and market timing model&#8230;since 2002<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a><strong><em>MTG Market Timing Model &#8211;&nbsp; SELL (day 1 of a new rally attempt)&nbsp;<\/em><\/strong><\/a><\/p>\n\n\n\n<p>Our timing model was designed to keep our trades in line with the prevailing market trend, not to call tops or catch bottoms in S&amp;P 500 or Nasdaq Composite.<\/p>\n\n\n\n<p><a><strong><em>today&#8217;s watchlist (potential trade entries):<\/em><\/strong><\/a><\/p>\n\n\n\n<p><img decoding=\"async\" alt=\"$todays watchlist\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/watch.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>In last night&#8217;s report, we discussed the possibility of a gap-down reversal with US futures down more than 2% in after-hours trading.&nbsp; The combination of a big gap down after a two-week selloff below a major swing low and news of Russia attacking Ukraine, set the stage for a reversal, but certainly didn&#8217;t expect to see such a strong advance.<\/p>\n\n\n\n<p>Thursday&#8217;s powerful reversal action is day one of a new rally attempt that was led by a big recovery in growth.<\/p>\n\n\n\n<p>The Nasdaq Composite gained +3.3% on volume but closed an impressive 7% off the day&#8217;s low in what was almost a bullish engulfing day!<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220225IXIC.png\" alt=\"$Nasdaq COmposite Daily\" title=\"\"><\/figure>\n\n\n\n<p>Growth ETFs ripped higher with $ARKK +7.8% and $IWP +4.3%. $ARKK closed 13% off the day&#8217;s low and with a bullish engulfing candle!<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220225ARKK.png\" alt=\"$ARKK Daily\" title=\"\"><\/figure>\n\n\n\n<p>Whenever the market (ideally the Nasdaq) attempts to bottom out, we look for a few things:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher lows, market should hold the low set on day one of the new rally attempt<\/li>\n\n\n\n<li>Market reclaims 10-day SMA and eventually reclaims the 20-day EMA (within a few weeks)<\/li>\n\n\n\n<li>Follow through day (buy signal) prints on day 4 or later of a new rally attempt (may occur before or after the index reclaims the 20-day EMA)<\/li>\n\n\n\n<li>New leadership emerges to confirm the fresh new buy signal<\/li>\n<\/ul>\n\n\n\n<p>Although the well-known follow-through day is still a valid buy signal, we do place more weight on the index reclaiming the 20-day EMA. Good things tend to happen once an index is above the 20-day EMA, so there is no need to rush to buy.<\/p>\n\n\n\n<p>Below are a few examples of bottoming action on the daily chart of the Nasdaq since 2016. Not every bottom will play this way so these charts are just a guide.<\/p>\n\n\n\n<p>In 2016, Nasdaq reclaimed the 20-day EMA in four sessions.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220225COMP1.png\" alt=\"$Nasdaq COmposite Daily\" title=\"\"><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220225COMP2.png\" alt=\"$Nasdaq COmposite Daily\" title=\"\"><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220225COMP3.png\" alt=\"$Nasdaq COmposite Daily\" title=\"\"><\/figure>\n\n\n\n<p>There are no new official setups for Friday as there are no low-risk entries (based on the daily chart) on either side of the market after Thursday&#8217;s action.<\/p>\n\n\n\n<p>For those who prefer to be a bit more active with their trading, our living trading room on slack is where we discuss setups that develop on the fly, such as a gap-down reversal or a tight consolidation on the 15 or 60-minute charts.<\/p>\n\n\n\n<p>Our short-term plan is to wait for some sort of low-risk buy point such as a tight-ranged inside day to form in faster-moving stocks that are bouncing from deeply oversold levels. If the rally attempt begins to show signs of sticking, then we&#8217;ll turn our focus to the more classic IBD\/CANSLIM patterns such as the cup with handle, flat base, or double bottom.<\/p>\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; none<\/li>\n\n\n\n<li>\u00a0Shorts &#8211; none<\/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>In last night&#8217;s report, we discussed the possibility of a gap-down reversal with US futures down more than 2% in after-hours trading.\u00a0 The combination of a big gap down after a two-week selloff below a major swing low and news of Russia attacking Ukraine, set the stage for a reversal, but certainly didn&#8217;t expect to see such a strong advance.<\/p>\n<p>Thursday&#8217;s powerful reversal action is day one of a new rally attempt that was led by a big recovery in growth.<br \/>\nThe Nasdaq Composite gained +3.3% on volume but closed an impressive 7% off the day&#8217;s low in what was almost a bullish engulfing day!<\/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-17386","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\/17386","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=17386"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/17386\/revisions"}],"predecessor-version":[{"id":17390,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/17386\/revisions\/17390"}],"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=17386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=17386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=17386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}