Current signal generated on close of November 13.
Portfolio exposure can be anywhere from 50 to 100% long. If positions are holding up well, then one can add exposure beyond 100%.
Past signals:
- Neutral signal generated on close of November 6.
- Buy signal generated on close of September 9
- Neutral signal generated on close of August 15
- Buy signal generated on close of July 11
- Neutral signal generated on close of July 5
- Sell signal generated on close of June 24
today’s watchlist (potential trade entries):
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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. 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.
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closed positions:
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ETF position notes:
- $SOCL buy entry triggered.
stock position notes:
- $SSTK buy setup triggered. Note that the buy setup in $SLCA is either or…we will not have two entries, either the breakout or pullback entry will trigger. The other is to be canceled.
ETF, stock, and broad market commentary:
The major averages closed mixed on the day, with small and mid-cap stocks closing in positive territory, while the Dow Jones and S&P 500 closed -0.4% lower.
Constant rotation has been the theme for 2013. In November, money rotated out of NASDAQ stocks and into Dow and S&P 500. During the past two weeks, money has rotated out the Dow and S&P 500 and back into the NASDAQ and small caps.
With financial stocks in pullback mode, we anticipate our long position in Direxion Daily Financial Bull 3X Shares ($FAS) pulling back to $78. There is support around this area from a rising 10-week MA and prior breakout levels (resistance now becomes support).
First Trust ISE Cloud Computing Index Fund ($SKYY) has formed a bullish 7-week base near the highs. Note the bullish support at the 50-day MA during the consolidation. Volume has really dried up this week which is also a bullish sign, as Thursday’s volume the lowest volume $SKYY has seen in several months.
The weekly chart below shows the tight consolidation at highs.
$SOCL buy entry triggered on heavier than average volume. The setup may need more a few more weeks to develop, but look for the 10 and 20-day moving averages to cross above the 50-day MA before there is a significant breakout.
On the stock side, $SSTK buy stop triggered and rallied about 7% higher on heavier than average volume. Glad we got back in on that one, because that was quite the washout!
Much like the 13% drop from the highs in $SSTK, $HOLI’s recent false breakout has corrected about 15% off the swing high. We like $HOLI for a buy entry above $17 using the 50-day MA as our stop. The stop is placed below the 50-day MA to give some wiggle room, but the price action should hold up at that level next week.
$HOLI’s breakout was a move to new all-time highs, so the stock has plenty of potential IF it can hold the 50-day MA.
Please note that there are two buy scenarios in $SLCA, but only one setup can trigger. There is a breakout and pullback setup, and whichever triggers first is the one we will take. Once triggered, the other setup is to be canceled right away. Most quality brokerages will allow you to place such an order. If your broker does not allow you to do this, then we would place a buy stop order only.