Commentary:

Tuesday marked the fourth consecutive session of predominantly range bound trading. Still, stocks ended the day slightly higher after recovering from early session selling. The rebound occurred late in the day and carried all but the Dow to higher ground. The small-cap Russell 2000 and the S&P MidCap 400 led the recovery, as both tacked on 0.2% gains on the day. The Nasdaq closed higher by 0.1%, while the S&P 500 closed a fraction above breakeven. The Dow Jones Industrial Average slid only fractionally.

Volume was higher across the board yesterday. Turnover on the Nasdaq rose by 2.1%, while on the Big Board volume jumped an impressive 11.7%. Declining volume outpaced advancing volume on both indices. The ratio of declining volume over advancing volume was 1.7 to 1 on both the Nasdaq and the NYSE.

Yesterday we entered a short position in The Guggenheim Frontier Markets ETF (FRN) as it fell below its three day trading range. FRN was not on the watchlist, but was discussed in a recent newsletter. The decision to enter the position was made intraday, and an email alert was sent to our subscribing members. Trade details can be found in the watchlist segment of today’s newsletter.

The iShares MSCI Sweden Index ETF (EWD) has been consolidating at its 52-week high for the past three weeks. A heavy volume rally above yesterday’s high of $32.02 may provide a buying opportunity for this ETF.

The SPDR S&P Emerging Markets Small Cap ETF (EWX) has tested support near $55.00 three times since October. A move below yesterday’s low of $54.70 may provide a shorting opportunity for this ETF. We are closely monitoring this setup for a possible entry.

Market leadership has shown some signs of stabilizing, but our nightly scans continue to provide an equal distribution of both long and short setups.

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Today’s Watchlist:

There are no new official setups this morning. We will send an Intraday Alert if any new trades are made.

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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

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Notes:

• 
  Per intraday alert, we established a new short position in FRN. TBT has been removed from the watchlist.
  
  
• 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 support@morpheustrading.com if not already set up for this value-added feature we provide to subscribers.

Edited by Deron Wagner,
MTG Founder and
Head Trader