--> Selling Coffee ETN Into Strength After High Momentum Breakout ($JO)

Selling Coffee ETN Into Strength After High Momentum Breakout ($JO)

market timing model: BUY

Current signal generated on close of Feb. 13.

Portfolio exposure can be anywhere from 50% to 100% long (or more), depending on how open positions have held up.

Past signals:

    • Sell signal generated on close of February 3.
    • Neutral signal generated on close of January 24.
    • Buy signal generated on close of November 13
    • 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

 (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. 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:

  • $BZQ buy setup did not trigger due to the 5-minute rule. We are canceling the setup for now. If you are unable to use the 5-minute rule, try to exit the position during the day if possible.
  • Selling $JO at market on the open to lock in a strong gain.

stock position notes:

  • No trades were made.


ETF, stock, and broad market commentary:

Stocks reversed lower on a pick up in volume, creating ugly reversal candles in the Dow Jones, S&P 500, Russell 2000, and S&P Midcap 400.

The S&P 500 reversed lower on higher volume, producing a distribution day.

$SPY BEARISH REVERSAL CANDLE

After gapping lower on the open, $SPY rallied above the prior day’s high and failed to hold, selling off to new lows on the day in the afternoon.

$SPY has support around $181, where the 10, 20, and 50-day are clustered together.

The Nasdaq Composite also produced a distribution day, selling off -0.8% on higher volume and closing back below the prior swing high. The Nasdaq 100 ETF ($QQQ) is relatively strong, as is still trading above the prior swing high.

$QQQ distribution day

With the prior swing high and the rising 10-day MA, there should be decent support around the $85.50 to $89 level.

Given the sharp rally off the lows in the market, a few days of consolidation would be welcomed here, as our scans have not produced much in the way of new buy entries the past few days. The market timing model remains in buy mode, and leadership stocks continue to hold up well.

Financials continue to struggle, as Financial ETF ($XLF) cracked the 50-day MA on a pick up in volume after a light volume rally into the 50-day MA. Note the bearish reversal candle on higher volume below.

$XLF Bearish reversal candle

If $XLF can’t hold the 50-day MA, then we’d like to see the action hold $21. If support doesn’t hold at $21, look for a potential test of the 200-day MA.

After a 20% rally from our entry point, we are selling $JO at market on Thursday’s open to lock in gains.

$JO ripping higher

On the stock side, we have no new buy setups today. $TSLA reported earnings after the close, and rallied about 25 points off Wednesday’s close in after hours trading.

$SCTY also rallied about 2 points from Wednesday’s close in after hours trading. While Elon Musk had a bad day during market hours, the after hours session was quite kind! 🙂

Our scans have dried up a bit this week, so a few days of sideways action in the market should produce new buy setups.

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