{"id":17624,"date":"2022-01-06T06:48:00","date_gmt":"2022-01-06T11:48:00","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=17624"},"modified":"2023-02-16T02:44:58","modified_gmt":"2023-02-16T07:44:58","slug":"swing-trading-stocks-010622","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/swing-trading-stocks-010622\/","title":{"rendered":"The Wagner Daily &#8211; $QQQ Weekly Chart; S&amp;P False Breakout"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220107SPX.png\" alt=\"SP-500 daily\" title=\"\"><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Wagner Daily &#8211; January 6, 2022<\/h2>\n\n\n\n<p><em>Below is the full, archived issue of The Wagner Daily swing trading report (sent to members the night before the publication date).<\/em><\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe now<\/a><\/strong> for your access to the best stocks for swing trading, proven Morpheus stock trading strategy, and market timing model with a 20-year track record. <\/em><\/p>\n\n\n\n<p><em>Just drop us a comment with any questions or comments&#8211;we&#8217;d love to hear from you!<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p><a><strong><em>MTG Market Timing Model &#8211; sell warning for S&amp;P 500, sell for Nasdaq&nbsp;<\/em><\/strong><\/a><\/p>\n\n\n\n<p>Our timing model was designed to keep our trades in line with the prevailing market trend, not to call tops or catch bottoms in S&amp;P 500 or Nasdaq Composite.<\/p>\n\n\n\n<p><a><strong><em>today&#8217;s watchlist (potential trade entries):<\/em><\/strong><\/a><\/p>\n\n\n\n<p><img decoding=\"async\" alt=\"$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=\"$open positions\" title=\"\"><\/figure>\n\n\n\n<p><strong><em>closed positions:<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220107closed.png\" alt=\"$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>Per intraday alert, sold 1\/2 of $MU for a 6% gain and stopped out of the other half for +3%.<\/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 outside day action in the Nasdaq Composite and how the next move in either direction would be key. On Wednesday, the Nasdaq Composite broke Tuesday&#8217;s low and plunged -3.3% lower.&nbsp; Quite the&nbsp;nasty break of the 50-day MA!<\/p>\n\n\n\n<p>The daily chart of $QQQ shows support from prior lows around $378. The 100-day EMA which is close to the 20-week EMA is around $381.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220107QQQ.png\" alt=\"$QQQ daily\" title=\"\"><\/figure>\n\n\n\n<p>The weekly chart of $QQQ has held the 20-week EMA on a closing basis during the entire rally. Will we see a change in character this month?<\/p>\n\n\n\n<p>January 6, 2022<\/p>\n\n\n\n<p>And just like that, the S&amp;P 500 has turned into a false breakout.&nbsp;&nbsp;A close of 1% or more below the 21-day EMA would trigger a sell signal.&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220107SPX.png\" alt=\"SP-500 daily\" title=\"\"><\/figure>\n\n\n\n<p>Like the weekly of $QQQ, the 20-week EMA has provided support the entire rally but is stil 2.5% away.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220107SPX2.png\" alt=\"SP-500 daily\" title=\"\"><\/figure>\n\n\n\n<p>With growth taking a beating, $XLK and $SMH assumed leadership in the last two months of 2020.&nbsp; Money flowed&nbsp;into big cap tech such as $QCOM, $AMD, $AMAT, $MU, and $NVDA. On Wednesday, semiconductors lost two big-time leaders with $AMD and $NVDA breaking down below the 50-day MA. The others may soon follow.<\/p>\n\n\n\n<p>Nasdaq 100 leadership is breaking down as well with $MSFT and $GOOGL slicing through the 50-day MA. $AAPL is at the 20-day EMA for now but looks vulnerable down to the swing low around $168.<\/p>\n\n\n\n<p>There are no new setups for Thursday. Going long isn&#8217;t an option and the reward to risk ratios on most shorts are not favorable after Wednesday&#8217;s brutal selloff. Having said that, there may be one or two short setups in play for aggressive traders.<\/p>\n\n\n\n<p>$LRCX may be in play on a&nbsp;slight bounce with the 20-day EMA as resistance. using a 5 or 15-minute chart to monitor the action.&nbsp; The target would be a test of the swing low or 50-day MA, whichever comes first.&nbsp; This is not an official setup.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220107LCRX.png\" alt=\"lrcx daily\" title=\"\"><\/figure>\n\n\n\n<p><strong>For now, cash is king.&nbsp;&nbsp;<\/strong><\/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>The weekly chart of $QQQ has held the 20-week EMA on a closing basis during the entire rally. Will we see a change in character this month?<\/p>\n<p>January 6, 2022<\/p>\n<p>And just like that, the S&#038;P 500 has turned into a false breakout.\u00a0\u00a0A close of 1% or more below the 21-day EMA would trigger a sell signal.<\/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-17624","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\/17624","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=17624"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/17624\/revisions"}],"predecessor-version":[{"id":17638,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/17624\/revisions\/17638"}],"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=17624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=17624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=17624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}