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:

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ETF position notes:

• No trades were made.

stock position notes:

• No trades were made.

ETF and broad market commentary:

Stocks closed mixed yesterday and well off session highs. Trade was also mixed. The S&P MidCap 400 showed the most resiliency as it posted a 0.2% gain. The S&P 500 ended fractionally higher, while the Dow Jones Industrial Average closed fractionally lower. The tech-rich Nasdaq slid 0.3% and the small-cap Russell 2000 was the session’s worst performer, as it fell 0.7%.

For a second day in a row, market internals were mixed. Turnover on the Nasdaq fell 0.4% but increased on the NYSE by 8.8%. However, declining volume edged out advancing volume on the Nasdaq and the NYSE by ratios of 1.4 to 1 and 1.1 to 1 respectively.

Yesterday, on a burst of volume, the ProShares UltraShort Silver ETF (ZSL) tested its 3 day low and undercut the 10-day EMA before reversing to close near session highs. A volume fueled move above yesterday’s high of $68.21 could provide a buying opportunity in this ETF. We are placing ZSL on the watchlist. Trade details are available to our subscribing members in the watchlist segment of the newsletter.

What started as a good day for the broad market ended on a bearish note as both volume and selling activity quickened in the last two hours of the session. Selling into strength on higher volume is a noteworthy characteristic of a bear market and provides further evidence that the market is struggling to find traction.

stock commentary:

Judging by the lack of follow through during yesterday’s trading, the S&P 500 may only bounce one or two days before heading back down to the 50-day MA. We listed CRM an official short setup on today’s watchlist to take advantage of further weakness in the S&P. We like the selling action in CRM late in day, as it closed well off the session.

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.