Bullish reversal in Vietnam? ($VNM)

market timing model:

– Timing model back to buy mode as of the close of April 10, with S&P 500 and Nasdaq breaking out on big volume. (click here for more details)

today’s watchlist (potential trade entries):

$todays watchlist
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open positions:

Below is an overview of all open positions, as well as a report on all positions that were closed only since the previous day’s newsletter. Net P/L figures are based on two separate $50,000 model portfolios (one for ETFs and one for stocks). Changes to open positions since the previous report are listed in pink shaded cells below. Be sure to read the Wagner Daily subscriber guide for important, automatic rules on trade entries and exits.

$todays watchlist
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closed positions:

open position summary
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ETF position notes:

  • Just a reminder that $SMH is a buy limit order. If our buy limit price is hit and your order is not filled, then please go long using a market order ASAP. Please note that the 5-minute rule does not apply to limit orders.

stock position notes:

  • Cancelled the $AMBA buy setup. May be back on watchlist next week if it can put in a bullish reversal candle within the next few days. $TSLA buy setup was cancelled. $WDAY long triggered on open.

ETF, stock, and broad market commentary:

The Dow Jones and S&P 500 pushed higher while the Russell 2000 and S&P 400 stalled out at prior highs. The Nasdaq showed a bit of stalling action on higher volume, but the higher turnover can be attributed to a gap down in MSFT that produced a huge spike in volume.

The AAII Investor Sentiment reading as of April 10 reported a 16% drop in bulls vs. a 26% jump in bears. The heavy increase in the bear camp probably added more fuel to the fire on Wednesday, as most short sellers were wiped out of their positions.

The rally continues to impress with its ability to fight off 5 distribution days and rotate leadership. Until leading stocks break down en masse we have to believe that there is more upside.

Earlier in the week we posted a chart of Market Vectors Vietnam ETF ($VNM), looking for a breakout above a tight-ranged consolidation after forming a higher low on the daily chart. $VNM broke support at 20.13 a few days ago, so we removed the setup from our watchlist. $VNM returns to the watchlist today as a buy setup if the price action can return back above the 20-day EMA and our original entry point.


Even if our buy entry does not trigger, we’d like to see $VNM close in the top 30% of the week’s range to produce a valid reversal candle on the weekly chart. If so, then we will keep the setup on our watchlist for a potential entry next week.

Our $SMH buy order remains live, as the price action may chop around for another day or two before heading higher. $EWS is also still in play.

We cancelled the $TSLA buy setup yesterday, as the 5-minute high was more than 1.3% above our buy entry. However, if you currenlty own $TSLA, great! Stick with the position using our stop and we will continue to update the setup to let you know when it is time to sell.

We have two new stock setups for today. $ATHN is a potential downtrend line breakout entry. The only problem with $ATHN is that it is scheduled to report earnings on April 25. Because of this, we are reducing our share size (1/4 of full) and going with a tight stop. If ATHN can breakout and give us a 5% profit buffer, then we may look to hold through earnings. ATHN’s relative strength ranking is a bit weak at 76, but its earnings per share ranking is 93 out of 99, with respectable earnings and revenue growth the past few quarters.


The second buy setup is in $ZQK, which has formed a bullish 9-week base above the 50-day MA. A break of the downtrend line and the two-day high should attract some buying interest. $ZQK has a great strength ranking ranking of 98.


relative strength combo watchlist:

Our Relative Strength Combo Watchlist makes it easy for subscribers to import data into their own scanning software, such as Tradestation, Interactive Brokers, and TC2000. This list is comprised of the strongest stocks (technically and fundamentally) in the market over the past six to 12 months. The scan is updated every Sunday, and this week’s RS Combo Watchlist can be downloaded by logging in to the Members Area of our web site.

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