market timing model: 

BUY (click here for more details)

today’s watchlist (potential trade entries):

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. Net P/L figures are based on two separate $50,000 model portfolios (one for ETFs and one for stocks). Changes to open positions since the previous report are listed in red 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:

Having trouble seeing the closed positions graphic above? Click here to view it directly on your web browser instead.

ETF position notes:

• No trades were made.

stock position notes:

• Sod AMLN on the open to lock in a quick 8% gain.
• ONXX buy setup triggered.

ETF and broad market commentary:

Stocks continued their upward surge on Friday, on strong trade. All five major indices closed more than two percent higher. High beta issues led the charge with the Nasdaq, small-cap Russell 2000 and S&P MidCap 400 posting gains of 3.0%, 2.9% and 2.8% respectively. The S&P 500 tacked on 2.5% while the Dow Jones Industrial Average improved by 2.2%.

Market internals ended the session mixed. Volume plunged on the NYSE by almost 30.0% but dropped only 5.0% on the Nasdaq. Advancing volume outpaced declining volume by a ratio of 1.8 to 1 on the NYSE and by a ratio of 2.0 to 1 on the Nasdaq. The light volume suggests that institutions were not actively buying or selling on yesterday.

On June the 28th, the United States Natural Gas Fund (UNG) formed a bullish reversal candle, as it undercut its 10-day moving average before rallying to close near session highs. For the past two days, UNG has been consolidating along its 10-day MA, as it has attempted to get back above resistance near $19.50. A volume fueled move above the three day high of $19.47 could provide a buying opportunity in UNG. We are placing UNG on the watchlist. Trade details are posted for our subscribers in the watchlist section of the newsletter.

As might be expected, the market consolidated yesterday, following two days of very bullish price action. We wouldn’t be surprised to see another day or two of hesitation, prior to the market resuming any potential move higher.

stock commentary:

LNKD is trading back above the 50-day MA after pulling back about 25% off the recetn high. LNKD has formed a tight ranged consolidation just above the 50-day MA the past two weeks. The buy entry is over yesterday’s high. Although we would like to see a bit more time in consolidation mode, LNKD could rip higher from here and we don’t want to miss the move out.

 

LF is back on the watchlist today. Please note the two entry points. The first entry is above the high of 6/29 and the second entry is over yesterday’s high, which if triggered should spark some heavy buying.

If you are a new subscriber, please e-mail rick@morpheustrading.com with any questions regarding our trading strategy, money management, or how to make the most out of this report.

 
relative strength watchlist:

Our 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. This list is comprised of the strongest 100 (or so) stocks in the market over the past six to 12 months. The scan is updated every Sunday, and this week’s RS Watchlist can be downloaded by logging in to the Members Area of our web site.