Stocks ended the session essentially flat on a modest decrease in volume. With the exception of the Nasdaq, the major indices also ended the session flat. The technology laden index closed lower by 0.4% under the weight of heavy selling in the networking sector among others. The S&P MidCap 400 ended the day flat while Dow Jones Industrial Average, S&P 500 and small-cap Russell 2000 all shed 0.1% on the session. For the most part the market consolidated at the two day high.
For the second time in as many days market internals were mixed. Volume was fractionally lower on the Nasdaq but down almost 7.0% on the NYSE. The advancing volume to declining volume ratio was a mirror opposite between the NYSE and the Nasdaq. On the NYSE advancing volume outpaced declining volume by 1.4 to 1 while on the Nasdaq declining volume got the upper hand by the same factor. The lighter volume and flat price action suggests that Wednesday was nothing more than a consolidation day for the broad market. There is no evidence to suggest that institutions were actively involved in the market yesterday.
Via an intraday alert we sold our position in URE for a quick 1.6 point gain. We didn’t like the whippy action in the broad market and decided to protect a solid profit.
Since losing support of its 200-day MA on June 22nd, the iPATH Dow Jones AIG Grains ETF (JJG) has rallied back above this key mark. However, over the past two sessions two reversal candles have formed that suggest JJG may be in the midst of a pullback. A move below the two day low of $51.36 may provide an opportunity to short JJG.
Since a big breakout move on June 28th, the EG Shares Dow Jones Consumer Titans ETF (ECON) has been formed a bullish pennant like pattern and could be preparing for another move higher. A volume fueled rally back above yesterday’s high of $24.15 could present a buying opportunity in this ETF.
The market continues to send mixed messages as money rotates among sectors. Leadership is still present in the market so our current bias is bullish. However due to sector rotation there are ETFs that could provide shorting opportunities. We remain cautious as whipsaw moves can quickly erase profitable trades. We are currently trading with half or less of our normal position size.
There are no new setups for today. As always, we will send an intraday alert if any new trades are made.
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, sold URE to protect gains in a choppy market.
- 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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Edited by Deron Wagner,
MTG Founder and