ETFs and market commentary:

Stocks ended the session mixed on heavy trade. The NYSE and S&P 500 posted modest gains of 0.3% and 0.1% respectively. The Nasdaq closed fractionally lower, while the Dow Jones Industrial Average, S&P MidCap 400 and small-cap Russell 200 all shed 0.1%. The airline, home builder and automotive sectors displayed relative weakness on Friday, while coal and oil services showed strength.

For the third time in as many days, the session closed with internals mixed. Volume skyrocketed on the Nasdaq by 20.7% and on the NYSE by 58.4%. Advancing volume outpaced declining volume by 1.2 to 1 on both exchanges. Although the Nasdaq narrowly missed an accumulation day, the NYSE saw institutional buying as it closed at a new 52 week high.

Since testing its 50-day MA on March 12th, the iShares MSCI Brazil Index Fund (EWZ) has been consolidating in a pennant like formation at its 20-day EMA. A move above the seven day high of $68.30 could provide a buying opportunity in this ETF. We are adding EWZ to the watchlist. Trade details can be found in the watchlist segment of the newsletter.

During the last market pullback, the WisdomTree Emerging Markets ETF (DEM) showed excellent relative strength as it recovered quickly after undercutting its 20-day EMA. Over the past four sessions, DEM has been consolidating in a tight range at the 20-day EMA. A volume powered move above the four day high of $58.69 could provide a buy entry trigger for DEM. We will be monitoring this setup closely for a possible long entry.

USO hit its trigger yesterday and rallied into the close. IYR continues to consolidate at its 3 day high, while DIG rallied above its five day high. XLU gapped down on Friday and narrowly missed hitting its stop. XLU is the only open position that causes concern. If XLU can’t reclaim its 20-day and 50-day moving averages quickly, we may exit the trade early. Price action in the broad market remains bullish as evidenced by the accumulation day on the NYSE. We continue to be of the opinion that if the Russell 2000 can break to a new high, the entire market will see another significant move higher.

Today’s ETF Watchlist:

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 DailySubscriber Guide for important, automatic rules on trigger and stop prices

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

• USO long triggered.

• 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 support@morpheustrading.com if not already set up for this value-added feature we provide to subscribers.
  

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Stocks:

 

We added one new setup to the watchlist today in STX, which has pulled back to the 20-day EMA after a false breakout. A move above Friday’s high should spark some buying interest.

Today’s Stock Watchlist:

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 model account size. Changes to open positions since the previous report are listed in red text below.

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

• RGR buy entry triggered. We are not adding any new names to the watchlist (after today) until we lock in some gains on open positions.

Relative Strength Watchlist:

The Relative Strength (or RS) Watchlist makes it easy for subscribers to import data into their own scanning software, such as Tradestation, Interactive Brokers, and TC2000. The list is comprised of the strongest 100 (or so) stocks in the market over the past six to 12 months. The scan is based on the following criteria and is updated every Monday:

• Stock is in a well defined uptrend, trading above both the 50-day and 200-day moving averages, with the 50-day moving average above the 200-day moving average (both moving averages should be in an uptrend as well).
• Today’s close is less than 20% off the 52-week high
• Close is greater than $5.
• Volume is greater than 200,000 shares per day (using a 50-day volume moving average).

Click here to view this week’s Relative Strength Watchlist in excel

Click here to view this week’s Relative Strength Watchlist as a text file