You know, he isn’t specifically stating, “No, Daryl isn’t blinking out Morse code with his eyes, and no, Rick wouldn’t understand it even if Daryl was doing that.”
When Morse code was applied, the message appeared to be “I East,” indicating the Saviors’ headquarters is due east from Alexandria.
But there are the implications.
To lay out the details in quick fashion, Negan paraded a silent Daryl around for the villain’s first visit to Alexandria, and there was one scene where Daryl seemed to be blinking in an intentionally staggered way when he and Rick were standing more or less face-to-face.