--> A Manic Market Monday

A Manic Market Monday


Commentary:

Stocks ended the session mixed on Friday as trade declined. Although four of the five major indices finished higher, only the Nasdaq showed an appreciable gain. The technology rich index ended the day up by a solid 0.9%. The small-cap Russell 2000 tacked on a small 0.2% gain while both the S&P 500 and the S&P MidCap 400 eked out 0.1% gains. The Dow Jones Industrial Average was the day’s laggard as it fell by just over 0.3%.

The session ended with market internals mixed. Volume declined sharply across the board. By the closing bell volume on the Nasdaq had declined by 30.0% and on the Big Board by 25.0%. Declining volume was fractionally higher on the NYSE. However, on the Nasdaq the spread ratio ended the session at 2.7 to 1 in favor of advancing volume. The light volume attests to a lack of institutional participation in the market on Friday.

In the July 22nd Newsletter we stated that EPU may be setting up as a short candidate. On Friday EPU formed a second consecutive reversal candle and closed barely off session lows. We are placing EPU on the watchlist. This ETF may be difficult to short and should this setup trigger a call to your broker may be necessary in order to obtain shares. There is no inverse ETF for this trade. BZQ could be considered as a distant proxy for this trade although it does not currently provide a clear entry trigger.

Since losing support of its 200-day MA in May, the Global X Lithium ETF (LIT) has rallied back to this key mark where it will likely find resistance. It is noteworthy that LIT has made this advance on light volume which suggests a lack of institutional participation in the move. LIT could present a shorting opportunity with an “overcut” of the 200-day MA and a quick move back below this level. We will be monitoring LIT closely for a possible shorting opportunity.

As of this writing the DJIA, S&P 500 and Nasdaq futures are all down approximately 1.0%. Based upon this data it appears that the market could be in for a rough day on Monday. We suggest caution in the current environment.


Today’s Watchlist:


EPU
Short

Shares = 200
Trigger = 42.39
Stop = 44.43
Target = Previous swing low
Dividend Date = n/a

Notes = See commentary above


Daily Performance Report:

Below is an overview of all open positions, as well as a performance report on all positions that were closed only since the previous day’s newsletter. Net P/L figures are based on the $50,000 Wagner Daily model account size. Changes to open positions since the previous report are listed in red text below. Please review the Wagner Daily Subscriber Guide for important, automatic rules on trigger and stop prices

    position summary

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    Notes:

  • No changes were made to open positions.
  • Reminder to subscribers – Intraday Trade Alerts to your e-mail and/or mobile phone are normally only sent to indicate a CHANGE to the pre-market plan that is detailed in each morning’s Wagner Daily. We sometimes send a courtesy alert just to confirm action that was already detailed in the pre-market newsletter, but this is not always the case. If no alert is received to the contrary, one should always assume we’re honoring all stops and trigger prices listed in each morning’s Wagner Daily. But whenever CHANGES to the pre-market stops or trigger prices are necessary, alerts are sent on an AS-NEEDED basis. Just a reminder of the purpose of Intraday Trade Alerts.
  • For those of you whose ISPs occasionally deliver your e-mail with a delay, make sure you’re signed up to receive our free text message alerts sent to your mobile phone. This provides a great way to have redundancy on all Intraday Trade Alerts. Send your request to [email protected] if not already set up for this value-added feature we provide to subscribers.

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      Edited by Deron Wagner,
      MTG Founder and
      Head Trader

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