Commentary:
Stocks closed modestly down on Wednesday, as four of the five major indices closed in the red. The price action could generally be considered positive as the market maintained a tight trading range after a strong two day rally. The Dow Jones Industrial Average was the sole holdout on the day, as it closed just above the flatline. The Nasdaq closed just below par as it lost 0.1% yesterday. The S&P MidCap 400, S&P 500 and the small-cap Russell 2000 slipped by 0.2%, 0.3% and 0.4% respectively.
Yesterday’s internals were mixed. Turnover fell across the board. Volume slipped on the NYSE by 14% and on the Nasdaq by 12%. Advancing volume was higher than declining volume on the Nasdaq by a factor of 1.7 to 1; while the NYSE saw declining volume outpace advancing volume by a factor of 1.9 to 1.
Yesterday afternoon we sent an alert that we were buying 300 shares of KOL at market. As always, trade details are posted in the watchlist segment of the newsletter. Should UNG move back above the 5 day high of $6.04, buying interest will likely spike. ILF moved back in our favor today, as it found resistance at the twenty and fifty day moving averages.
The ProShares UltraShort MSCI Brazil ETF (BZQ) rallied back above its 50-day MA yesterday on increasing volume. A move above Wednesday’s high of $16.62 may provide a long trigger for this inversely correlated ETF.
The Global X Uranium ETF (URA) rallied broke out on massive volume two days ago (02/01/11). A pullback/undercut of the 20-period EMA ($21.50-$21.75 range) on the hourly chart below may provide a long entry trigger for this ETF. We will be following it closely for a possible entry.
The First Trust Dow Jones Internet ETF (FDN) recently undercut the 50-day MA, and is currently poised to break above a 10 day consolidation zone. A move back above $35.51 may present a long trigger for this ETF. We are placing FDN on the watchlist. For our subscribing members trade details are posted in the watchlist portion of the newsletter.
Based on today’s price and volume action the odds now favor further upside. Nonetheless, rotation continues among ETF categories so there are pockets of weakness. In particular, emerging market ETFs continue to show weakness.
Today’s Watchlist:
FDN
Long
Shares = 400
Trigger = 35.51
Stop = 34.58
Target = 37.45
Dividend Date = n/a
Notes = see commentary above
IJT
Long
Shares = 300
Trigger = 74.47
Stop = 72.79
Target = 77.85
Dividend Date = n/a
Notes = see commentary from Feb. 2 report
ECH
Short
Shares = 300
Trigger = 70.97
Stop = 72.85
Target = 67.75
Dividend Date = n/a
Notes = see commentary from February 1 report
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
- Per intraday alert, we added one new long position in KOL.
- 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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Notes:
Edited by Deron Wagner,
MTG Founder and
Head Trader