today’s watchlist (potential trade entries):
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 a pink shaded cell below. New entries are shaded in green cells. Be sure to read the Wagner Daily subscriber guide for important, automatic rules on trade entries and exits.
Having trouble seeing the open positions graphic above? Click here to view it directly on your web browser instead.
Having trouble seeing the closed positions graphic above? Click here to view it directly on your web browser instead.
ETF position notes:
- Although it is not the perfect proxy for shorting XME, an alternative trade would be to buy the inverse ETF, DUST. The trade details are: side = long, shares = 60, trigger = 49.49, stop = 43.71, target = 59.30
stock position notes:
- Raised the stop price in MDVN on the existing position and on the buy stop order at 76.11. If we stop out of the exiting position in MDVN before the add triggers, then we will cancel the add.
- TISA is listed twice in the open positoins section due to the split stops.
SPECIAL NOTE: ALL trade entries and exits, including updated stop prices, will now be posted in each night’s newsletter. This change will enable our valued subscribers who are unable to follow the market during daytime hours to completely follow our system. Starting April 19, The Wagner Daily will become a fully 100% end-of-day swing trading service. Intraday e-mails will continue to be sent to subscribers, but they will only be sent exclusively to confirm trade entries or exits that are already listed with the predetermined prices listed in each nightly newsletter. Therefore, “Intraday Trade Alerts” will now be called “Courtesy Trade Confirmations” instead.
ETF and broad market commentary:
Stocks slipped lower on Wednesday on higher trade. All five major indices closed in the red. The small-cap Russell 2000 showed the most relative weakness yesterday, as it fell 0.9%. The Nasdaq, S&P 500 and S&P MidCap 400 all dropped 0.4%, while the Dow Jones Industrial average lost just over 0.6%. The computer services, Insurance and telecommunications sectors took the biggest hits yesterday, while gambling and travel & tourism fared well.
Market internals ended the session on a bearish note. Volume rose by 4.0% on the Nasdaq and 2.7% on the NYSE. Further, declining volume outpaced advancing volume on both exchanges by a ratio of 2.2 to 1. Based on the higher volume, the higher declining volume and the negative price action, we would categorize yesterday as a distribution day on both exchanges.
In the April 18th newsletter we stated that the SPDR S&P Metals and Mining ETF (XME) was a potential short candidate. Yesterday, XME repeated Tuesday’s price action, as it formed a reversal candle and closed near session lows. A move below yesterday’s low of $48.22 could present a shorting opportunity in this ETF. We are placing XME on the watchlist. For our subscribers, trade details are provided in the watchlist segment of the newsletter (see ETF notes section above for an aleternative to shorting XME).
During the recent round of selling, the SPDR S&P Bank ETF (KBE) has pulled back and held support at its 50-day MA. Over the past five sessions, KBE has twice attempted to rally above resistance at $23.49. A volume fueled move above this key mark could provide a buy entry trigger for KBE. We are placing KBE on the watchlist. As always, trade details are posted in the watchlist section of the newsletter.
The market attempted to gain its footing yesterday but came up short and ultimately posted a modest distribution day. Although the market is not falling apart, the more distribution days that accumulate, the more likely it becomes that we will at least test the recent swing lows.
We tightened up the risk on half the position in TISA, moving the stop up to just below breakeven. We are willing to give the second half of the position more room to breathe so we are keeping the original stop for now. With the market still producing distribution days and no accumulation days on the board we remain in sell mode. We see no reason to do much of anything under current conditions. Cash or 90% cash is king right now.
If you are a new subscriber, please e-mail [email protected] with any questions regarding our trading strategy, money management, or how to make the most out of this report.