Doji Stars Abound (SPY) (XLP)


Stocks ended mostly down on Monday, but barely. The S&P 500 was the day’s only winner, as it closed higher by a meager 0.1%. For the second time in as many days, the S&P MidCap 400 closed flat. Both the Nasdaq and the Dow Jones Industrial Average slid 0.1%, while the small-cap Russell 2000 was the weakest performer on Monday, as it shed 0.2%. The market was listless yesterday.

Internals were mixed yesterday. Volume slid on the Nasdaq by 14% and on the NYSE by 19.8%. On the NYSE plus volume outpaced minus volume by a ratio of 1.3 to 1, while on the Nasdaq declining volume topped advancing volume by 1.2 to 1. For a second straight day, market internals have provided no guidance with respect to the day’s price action. The light volume suggests that institutions “took a breather” from the market.

The S&P Select Consumer Staples ETF (XLP) has been consolidating along its 20-day EMA since pulling back on January 13th. Over the past four sessions this ETF has formed four reversal candles, as it has consistently held support at the 20-day EMA. A move above the January 19th high of $32.46 could present a buying opportunity in XLP. We are placing XLP on the watchlist. Trade details are available in the watchlist segment of the newsletter.

Since its breakout move last December, the iShares Dow Jones Dividend Index (DVY) has pulled back and has been setting a sequence of higher lows along its 20-day EMA. This is quite bullish price action. A volume fueled move above the January 17th high of $54.54 should provide the impetus for a move higher in DVY. DVY is also being added to the watchlist. Trade details are available to our subscribers in the watchlist portion of the newsletter.

Yesterday we exited our long position in DUST, well ahead of its stop, for a small loss. Please note that we have raised the stops in the remainder of our open positions. See the open positions section of the newsletter for specifics. The Nasdaq, S&P 500, S&P MidCap 400 and small-cap Russell 2000 all formed long legged doji candlesticks. Doji stars are clear hesitation patterns, suggesting the market may be looking to pull back. However, if we break the highs of these candlesticks, the market will likely catch a strong bid.

Today’s Watchlist:


Shares = 500
Trigger = 32.53
Stop = 31.84
Target = new swing high
Dividend Date = n/a

Notes = See commentary above


Shares = 300
Trigger = 54.62
Stop = 53.48
Target = new swing high
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

    position summary

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  • Per intraday alert, sold DUST for a small loss. See updated stops above in red.
  • 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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      Edited by Deron Wagner,
      MTG Founder and
      Head Trader