Commentary:
In another whipsaw session stocks ended the day mixed on heavier volume. Stocks gapped up sharply at the open but sold off for most of the day before staging a late session rally into the close. The divergence between the Nasdaq and the rest of the market continued on Thursday as the tech rich index closed lower by 0.4%. The small-cap Russell 2000 showed the most strength on the day as it tacked on 1.6%. The Dow Jones Industrial Average gained 1.3% while both the S&P 500 and the S&P MidCap 400 gained 0.8%.
Market internals also ended the session mixed as might be expected with the divergence in the market. Volume spiked on the Nasdaq by 18.7% but increased by a more modest 8.0% on the NYSE. The ratio of advancing to declining volume ended the day at a plus 3.0 to 1 on the NYSE and a minus 1.6 to 1 on the Nasdaq. Big name leadership stocks were on pressure virtually the entire day on the Nasdaq which suggests institutional distribution.
The ProShares Short MSCI Emerging Markets ETF (EUM) has shown significant relative strength as it has held its 20-day EMA on this pullback. A move back above the two day high should result in a breakout to higher ground for this ETF. An alternative entry would be a pullback-undercut of the 20-day EMA.
Since its big breakout move last week, the ProShares UltraShort Silver ETF (ZSL) has been consolidating just above its 20-day EMA and now appears poised for another move higher. A rally above the two day high of $17.32 could provide a long entry trigger for ZSL. We are monitoring ZSL closely for a potential long entry.
When leadership stocks are under pressure the health of the broad market should be questioned. Yesterday’s price action among market leaders was not encouraging. Also of concern yesterday is that weak industry groups held the market up. Bottom fishing is generally not a good sign for market bulls. It is not likely for the market to recover or sustain a meaningful rally on the back of market laggards.
Today’s Watchlist:
There are no new official setups for today. 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
- No changes to open positions.
- 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.
Having trouble seeing the position summary graphic above?
Click here to view it directly on your Internet browser instead.
Notes:
Edited by Deron Wagner,
MTG Founder and
Head Trader