Potential breakout entry in (KOL)


For the most part stocks finished higher on Monday, but trade was light. The S&P MidCap 400 and the small-cap Russell 2000 led all the major averages, as both advanced 0.5% for the session. The Nasdaq and The S&P 500 improved by 0.3% and 0.25% respectively. The Dow Jones Industrial average ended the day fractionally lower.

Market internals ended Monday’s session mixed. For the second consecutive day volume was markedly lower on both indices. On the Big Board turnover fell by 14.3% while on the Nasdaq it was lower by just over 5.0%. Advancing volume outpaced declining volume on the NYSE by a ratio of 1.5 to 1 and on the Nasdaq by a factor of 1.4 to 1.

Yesterday, URA hit its trigger and we entered the position. URA closed near the high of the session and appears to be on its way to setting a new high. We were stopped out of our remaining shares of ECH and sold IJT to lock in a healthy gain. We also closed the position in FDN netting a gain of approximately 1.2 points.

The PowerShares Financial Preferred ETF (PGF) has spent five consecutive days consolidating in a tight range. A move above resistance at $18.00 may present a buying opportunity in PGF. We are monitoring this setup for a possible long entry.

Yesterday, the Market Vectors Coal ETF (KOL) rallied back above the 50-day MA on increasing volume. A volume assisted move back above $47.20 could represent a buy trigger for this ETF.

The broad market continues to plod higher in what we’ve been referring to as the “range bound rally”. This may be largely explained by a lack of volatility in the market and the rotation of money among ETF classes. It is noteworthy that our overnight research revealed very few quality long or short setups. This suggests a pullback or several days of consolidation would be in order.

Today’s Watchlist:

There are no new official setups this morning. As always, we will send an Intraday Alert if any new trades are made.

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

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


  • Per intraday alert, sold FDN and IJT to lock in gains. The URA buy entry triggered. ECH stop triggered on the remaining half position and we are now out. We also covered half of ILF at break-even and lowered the stop on the remaining half position.
  • 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.
    Have you had your free 1-month trial to Morpheus Trading Group’s additional ETF and stock trading newsletters?

      Edited by Deron Wagner,
      MTG Founder and
      Head Trader