The Wagner Daily – Short Selling the Financial Sector ($XLF)

The Wagner Daily – Short Selling the Financial Sector ($XLF)

By Deron Wagner | March 24, 2022

The Wagner Daily – Archives

Below is the full, archived version of The Wagner Daily that was sent to subscribers on the evening of March 23, 2022.

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MTG Market Timing Model –  BUY as of 3/16 close

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&P 500 or Nasdaq Composite.

today’s watchlist (potential trade entries):

open positions:

closed positions:

position notes:

$BROS sell stop triggered and we out. 


The sharp rally off the lows ran into some selling on Wednesday though total volume was lighter on both exchanges. Let’s see how the major indexes hold up during the next few days.

S&P 500:

Press chart to view full-size

Wednesday’s selling stopped us out of $BROS and saw $GFS close back below the breakout pivot. $BROS could be back in play soon if a new buy entry develops Friday or early next week.

Financials were relatively weak on Thursday with $XLF closing back below the 50-day MA with a -1.9% loss. Since the real bodies of Monday and Wednesday did not touch the real body of Tuesday, it’s like a one-day island reversal pattern.

Rather sell short $XLF we going long $FAZ (Direxion 3x bear inverted ETF) with a buy limit order, looking for a slight pullback from Wednesday to trigger our entry.

$ARCH is an unofficial setup above the two-day high.

For those who are new to the service, our system is based on trading growth stocks that can explode higher in a short period of time…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.

Keys to market turning bullish:

Buy signal in the timing model, such as a FTD (follow through day) or reclaim of 21-day EMAStocks begin to breakout on volume and hold… indexes hold the 21-day EMANumber of stocks making new 52-week highs vs 52-week lows enters into positive territoryAfter the first wave of breakouts, new setups emerge

Unofficial Setups – For experienced traders only, no guidance is given for these setups.

 Longs – $ARCH buy at 153.00 watching $LMT $SGRY  Shorts –  

This week’s stock watchlist in Google Sheets (link restricted to subscribers) is a good starting point for monitoring the health of the market for those who have limited time.

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