Commentary:
Stocks finished higher on Thursday after spend most of the session in the red. All five major indices finished the session higher. The small-cap Russell 2000 and the S&P MidCap 400 ended the day up by 0.3%. The Nasdaq, the blue chip Dow and the S&P 500 all posted 0.2% advances.
For a second consecutive day market internals were mixed. Volume on the Nasdaq receded 4.5%, while turnover on the NYSE was higher by 6.4% yesterday. Advancing volume outpaced declining volume on both indices by a factor of 1.4 to 1. Thursday’s market internals were indicative of a market that is consolidating.
After a big volume down day on Wednesday, the SPDR S&P Retail ETF (XRT) appeared to be on the brink of a major breakdown. However XRT reversed dramatically yesterday, as it gapped up and rallied to close near its intraday high. A volume fueled rally back above yesterday’s high of $47.57 provides a possible buy entry for this ETF.
The SPDR Series KBW Bank ETF (KBE) has spent the past three days consolidating on declining volume, which is often considered a bullish signal. Further, this consolidation has occurred after KBE broke out from a base at the 50-day MA. A rally above the February 1st high of $27.03 could provide a buying opportunity in KBE.
The ETFS Physical Palladium Shares ETF (PALL) has been consolidating in a very tight trading range for the past three weeks, as volume has contracted. A move above the three day high of $81.98 presents a potential long trigger for this ETF. Because of the bullish price and volume activity in PALL, we are placing it on the watchlist. Trade details can be found in the watchlist segment of the newsletter.
For the past three days the broad market has been consolidating in a tight trading range near the 52 week highs. From our nightly research we found long entries to be abundant. The market appears primed for another advance.
Today’s Watchlist:
PALL
Long
Shares = 200
Trigger = 82.14
Stop = 79.34
Target = New Highs (will trail stop)
Dividend Date = n/a
Notes = see commentary above
FDN
Long
Shares = 400
Trigger = 35.51
Stop = 34.58
Target = 37.45
Dividend Date = n/a
Notes = see commentary from Feb. 3 report
IJT
Long
Shares = 300
Trigger = 74.47
Stop = 72.79
Target = 77.85
Dividend Date = n/a
Notes = see commentary from Feb. 2 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
- We added one new short position in ECH. KOL triggered its stop on a dip below the 20-day EMA. We will continue to monitor the action for a possible re-entry.
- 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