{"id":17532,"date":"2022-01-25T06:48:00","date_gmt":"2022-01-25T11:48:00","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=17532"},"modified":"2023-02-15T23:18:08","modified_gmt":"2023-02-16T04:18:08","slug":"swing-trading-stocks-012522","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/swing-trading-stocks-012522\/","title":{"rendered":"The Wagner Daily &#8211; Bullish Reversal Sparks Rally"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220125SPX.png\" alt=\"$SP 500 daily\" title=\"\"><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Wagner Daily -January 25, 2022<\/h2>\n\n\n\n<p><em>Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).<\/em><\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe now<\/a><\/strong> for your access to the best stocks for swing trading, proven Morpheus stock trading strategy, and market timing model with a 20-year track record. <\/em><\/p>\n\n\n\n<p><em>Just drop us a comment with any questions or comments&#8211;we&#8217;d love to hear from you!<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p><a><strong><em>MTG Market Timing Model &#8211; Sell&nbsp;<\/em><\/strong><\/a><\/p>\n\n\n\n<p>Our timing model was designed to keep our trades in line with the prevailing market trend, not to call tops or catch bottoms in S&amp;P 500 or Nasdaq Composite.<\/p>\n\n\n\n<p><a><strong><em>today&#8217;s watchlist (potential trade entries):<\/em><\/strong><\/a><\/p>\n\n\n\n<p><img decoding=\"async\" alt=\"$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>Stocks recovered from an early morning selloff and ripped higher during the afternoon session. Although the S&amp;P 500 and Nasdaq Composite only gained +0.3% and +0.6% respectively, both indexes closed more than 4% off the day&#8217;s low.&nbsp; The bullish reversal action counts as day 1 of a new rally attempt.<\/p>\n\n\n\n<p>Strong close.. and likely headed higher in the short-term.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220125SPX.png\" alt=\"$SP 500 daily\" title=\"\"><\/figure>\n\n\n\n<p>Same for the Nasdaq Composite.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220125COMP.png\" alt=\"$nasdaq comp daily\" title=\"\"><\/figure>\n\n\n\n<p>Given that this is the first day of a potential new rally from a very oversold market, there isn&#8217;t much out there in terms of actionable buy setups in bullish chart patterns (not much of a surprise there).<\/p>\n\n\n\n<p>Energy stocks have held up fairly well, but most need another week or two of chop to produce reliable buy points.<\/p>\n\n\n\n<p>For the CANSLIM breakout type trader, this is still very much a &#8220;sit on hands&#8221; type environment where cash should be a 100% position.<\/p>\n\n\n\n<p>For swing traders who follow the trend, any stocks sold short recently should have been covered into weakness and there isn&#8217;t much to do on the long side.<\/p>\n\n\n\n<p>For the very aggressive short-term trader who can watch the market all day, there could be some counter-trend setups out there to take advantage of a potential 2-5 day bounce in the market.<\/p>\n\n\n\n<p>Look for a potential gap down Tueday morning in some of Monday&#8217;s more explosive movers off the lows, such as $MARA. If $MARA opens 2-3% lower and takes out the 5-minute thigh, then it could be in play with a tight stop beneath the morning low. Again, this is very for aggressive short-term traders that can watch the market all day.<\/p>\n\n\n\n<p>$MARA potentially in play on a gap down. Look for the low of the first 30-minutes to hold.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220125MARA.png\" alt=\"$MARA daily\" title=\"\"><\/figure>\n\n\n\n<p>There are no new setups for Tuesday which is day 2 of a new rally attempt. Note that Wednesday (Jan. 26) is a Fed day.<\/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>none<\/li>\n<\/ul>\n\n\n\n<p>See you in the chat room,<\/p>\n\n\n\n<p>Rick<\/p>\n\n\n\n<p>For those new to this report, our share size is pretty conservative with max. size around 10% of equity per trade. We do this because we prefer to trade 10-12 names to keep the report active.\u00a0 However, if your goal is to maximize returns, taking 18-25% positions is the way to go.\u00a0 \u00a0If trading in a non-margin account, this will limit the portfolio to 4-5 positions.\u00a0 If on margin, then 8-10 positions. Our risk per trade on average is just over 1\/2 of 1%. Experienced traders may want to risk 1% to 2% per trade.\u00a0 \u00a0For example, a 20% position in a 100k account with a 6% stop loss would result in a $1,200 loss (1.2%).\u00a0<\/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>Stocks recovered from an early morning selloff and ripped higher during the afternoon session. Although the S&#038;P 500 and Nasdaq Composite only gained +0.3% and +0.6% respectively, both indexes closed more than 4% off the day&#8217;s low.\u00a0 The bullish reversal action counts as day 1 of a new rally attempt.<\/p>\n<p>Strong close.. and likely headed higher in the short-term.<\/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-17532","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\/17532","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=17532"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/17532\/revisions"}],"predecessor-version":[{"id":17536,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/17532\/revisions\/17536"}],"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=17532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=17532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=17532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}