Commentary:
Friday was a bad day for Wall Street as stocks fell sharply and closed near session lows. All five major indices plummeted more than two percent with higher beta issues leading the decline. Both the small-cap Russell 2000 and the S&P MidCap 400 plunged 2.8% while the Nasdaq dropped just over 2.6%. The S&P 500 fell 2.5% and the Dow Jones Industrial Average shed 2.2%.
Although Friday’s price action was decidedly bearish, the session ended with market internals mixed. Volume increased on the Big Board by 5.7% while it fell on the Nasdaq by 11.4%. However declining volume overwhelmed advancing volume on the NYSE and the Nasdaq by 15.8 to 1 and 8.8 to 1 respectively. Friday’s higher volume selloff on the NYSE points to institutional distribution.
In Friday’s newsletter we stated that, “the ProShares UltraShort Silver ETF (ZSL) has been consolidating just above its 20-day EMA and now appears poised for another move higher. A rally above the two day high of $17.32 could provide a long entry trigger for ZSL“. ZSL acted well on Friday as it closed near session highs and is now within striking distance of $17.32. We are placing ZSL on the watchlist. Trade details are available to our subscribers in the watchlist segment of the newsletter.
The SPDR S&P Retail ETF (XRT) gapped down and closed near session lows yesterday. A move below the two day low of $46.13 could provide a shorting opportunity in this ETF.
Our positions in XLP, SRS and EFZ all acted well on Friday and we are now well in the money on all three trades. Should the market gap down on Monday we may look to take profits on at least a portion of each trade. Now that we are back within a few points of the critical support level of 1,120 on the S&P it is likely that this mark will be tested on Monday. If we are unable to maintain support at 1,120 then we’ll likely see a test of 1,100.
Today’s Watchlist:
ZSL
Long
Shares = 200
Trigger = 17.38
Stop = 13.87
Target = n/a
Dividend Date = n/a
Notes = See commentary above
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
- No changes to open positions.
- 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.
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Notes:
Edited by Deron Wagner,
MTG Founder and
Head Trader