--> Emerging Markets ETF breaking out? (EWX)

Emerging Markets ETF breaking out? (EWX)

ETFs and market commentary:

Stocks closed mixed yesterday on lighter trade. Small and mid cap issues underperformed, as large cap issues closed near break even. The small-cap Russell 2000 and the S&P MidCap 400 gave back some of Tuesday’s gains, as they fell 0.9% and 0.7% respectively. The S&P 500 slid 0.1% while the Dow Jones Industrial Average managed to close higher by 0.1%. The Nasdaq ended the session fractionally higher. Sectors demonstrating the most strength yesterday included computer hardware, healthcare and steel. Relative weakness was found in transportation, coal, oil services, telecom, utilities and gold mining.

Market internals ended the session mixed. Volume slid on the Nasdaq by 1.9% and on the NYSE by 4.1%. However, declining volume topped advancing volume across the board. The spread ratio ended the day at -1.7 to 1 on the NYSE and -1.4 to 1 on the Nasdaq.

Yesterday, the iShares Brazil Index Fund (EWZ) sold off for most of the session before recovering to close near the day’s highs. Further, the reversal occurred on high volume which adds bullish credence to the move. A rally above the four day high of $68.30 could present a buying opportunity in this ETF.

Over the past five sessions, the SPDR S&P Emerging Markets Small-Cap Fund (EWX) has been consolidating at its 10-day moving average and just below resistance of its recent swing high. A volume fueled move above the two day high of $47.49 could provide a buy entry trigger for this ETF.

The sole ETF watchlist candidate, DIG, triggered yesterday and we are now long. DIG struggled the entire session and closed below support of its 20-day EMA. XLU gave back all of Tuesday’s gains and closed near session lows. However, XLU has support of the 20-day EMA at its current level. IYR spent the session consolidating near Tuesday’s high. Through mid-afternoon yesterday, both the NYSE and Nasdaq were on pace to deliver a distribution day. We never like to see distribution days on the heels of an accumulation day. However, by the close, volume finished lower and the DJIA and Nasdaq managed to find their way into the black. What could have been a disaster ended up being quite bullish price action for the market. The market showed the kind of resiliency we like to see in a bull market.

Today’s ETF Watchlist:


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 DailySubscriber Guide for important, automatic rules on trigger and stop prices

position summary

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

  • Per intraday alert, DIG triggered a buy entry over the opening 5-minute high.

  • 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.

Stocks:

 

We added one new position yesterday in CLR, which closed at the lows of the day below the 20-day EMA. If the price action doesn’t recover back above the 20-day EMA in the next day or two, then it is likely to stop us out.

The daily chart below details the new buy setup in HSTM. Note the separate entries and stops in the watchlist section.

Today’s Stock Watchlist:


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 model account size. Changes to open positions since the previous report are listed in red text below.

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

  • CLR triggered a buy entry over the 5-minute high. STX was removed from the watchlist.


Relative Strength Watchlist:

The Relative Strength (or RS) Watchlist makes it easy for subscribers to import data into their own scanning software, such as Tradestation, Interactive Brokers, and TC2000. The list is comprised of the strongest 100 (or so) stocks in the market over the past six to 12 months. The scan is based on the following criteria and is updated every Monday:

  • Stock is in a well defined uptrend, trading above both the 50-day and 200-day moving averages, with the 50-day moving average above the 200-day moving average (both moving averages should be in an uptrend as well).
  • Today’s close is less than 20% off the 52-week high
  • Close is greater than $5.
  • Volume is greater than 200,000 shares per day (using a 50-day volume moving average).

Click here to view this week’s Relative Strength Watchlist in excel

Click here to view this week’s Relative Strength Watchlist as a text file

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