Commentary:
Stocks finished higher on Wednesday after a slow start. The market opened in the red but then staged an impressive intraday reversal on increased volume. The Dow Jones Industrial Average posted a 0.6% gain, while the Nasdaq improved by 0.5% for the session. The S&P 500 tacked on 0.3%. The small-cap Russell 2000 advanced marginally as it finished higher by 0.1%. The S&P MidCap 400 was the only index that was unable to end the day in positive territory. Still, given the slow start in the market, the mid cap index ended down by only 0.1% for the session.
Turnover was higher on both major indices on Wednesday. Volume improved by 7% on both the Nasdaq and the NYSE. The NYSE saw advancing volume finish at par with declining volume, while advancing volume edged out declining volume on the Nasdaq by a ratio of 1.6 to 1. Given the sharp reversal and increase in volume, Wednesday would likely be categorized as an accumulation day.
The GreenHaven Continuous Commodity Index ETF (GCC) has recently undercut and rallied back above the 50-day MA. Over the past four days this ETF has been consolidating above its 20-day EMA. A rally above the four day high of $35.09 may provide a long entry for GCC. We will be monitoring GCC for a possible long entry.
The Market Vector Coal ETF has maintained significant relative strength during the recent market volatility. Since January 2010 this ETF has tested and held support near $45.30. Yesterday, it broke above a three day consolidation pattern on a strong volume. As a more aggressive trade, KOL may provide a long entry above yesterday’s high. Ideally, we would prefer to see a pullback to yesterday’s breakout point or to the rising 20-day EMA for a possible long entry.
Based on the impressive and swift nature of Wednesday’s reversal, we wouldn’t be surprised to see some follow through to the upside. Nonetheless, the market has created serious overhead over the past several weeks and any follow through could be short lived.
Today’s Watchlist:
XLY
Short
Shares = 400
Trigger = 37.31
Stop = 38.33
Target = 34.90
Dividend Date = n/a
Notes = see commentary from March 21st letter
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, we added 200 shares of QID (we will update the stop using an intraday alert). EUM triggered its stop below the prior swing low and we are out.
- 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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Notes:
Edited by Deron Wagner,
MTG Founder and
Head Trader