ETFs and market commentary:
Stocks reversed sharply off their lows on Friday to close near session highs. All five major indices ended the day up. The small-cap Russell 2000 added 1.1% while the S&P MidCap 400 posted a 0.6% gain. Both the Dow Jones Industrial Average and the S&P 500 improved by 0.3%, while the Nasdaq tacked on 0.2%. Precious metals, oil services and transportation were big winners yesterday. Sectors that underperformed included footware, clothing & accessories and home construction.
Market internals were mixed on Friday. Volume slid by 5.3% on the Nasdaq and 6.0% on the NYSE. Advancing volume topped declining volume on the NYSE by 2.6 to 1 and on the Nasdaq by 1.1 to 1. Although neither the NYSE nor the Nasdaq posted an accumulation or distribution day, the price action was bullish on Friday.
Yesterday, on an uptick in volume, the Direxion Daily Semiconductor 3x Bull ETF (SOXL) formed its second consecutive reversal candle as it held support of the 10-day MA. A volume assisted move above the two day high of $43.32 could present a buying opportunity in this ETF.
We exited 125 shares of UWM on Friday when it hit our revised stop. However, later in the session, we re-entered UWM as it rallied above Thursday’s reversal candle. We also opened new positions in EPU and UGA, as both ETFs hit their triggers. USO recovered nicely on Friday but did close well off session highs. IYR remained pinned between its 10-day and 20-day moving averages. Our model portfolio is now 80% invested and intend to be very selective in adding new open positions. The market staged an impressive comeback on Friday. Just when it appeared that all of the major indices were headed lower, buyers stepped into the market and reversal candles are now abundant.
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:
- Sold 125 shares of UWM and re-entered 200 shares later in the day. UGA and EPU buy setups 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 [email protected] if not already set up for this value-added feature we provide to subscribers.
PII long triggered on Friday with a big spike in volume. Note the changes to TSLA and VVUS highlighted in the stock watchlist section below. CPHD was added to today’s watchlist with a stop below the 50-day MA.
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:
- PII long triggered.
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