Potential breakout entry in (KBE)


All five major indices moved higher on Wednesday, as trade increased. The small-cap Russell 2000 led the charge by posting an impressive 1.0% gain on the session. The Nasdaq and the S&P MidCap 400 both advanced by 0.7%, while the S&P 500 posted a 0.6% improvement day over day. The Dow Jones Industrial Average lagged the other averages as it ended the day only 0.5% higher.

Wednesday brought with it a vast improvement to market internals. Turnover improved across the board yesterday. Volume was higher on the Nasdaq by 12.3% and on the NYSE by just under 1%. The ratio of advancing to declining volume was 2.7 to 1 on the Big Board, and 2.5 to 1 on the Nasdaq.

The SPDR Series KBW Bank ETF (KBE) has been consolidating for the past three days on declining volume. Further, this price action follows a big breakout on February 11th. A move above the February 15th high of $27.77 should present a buy trigger for this ETF. We are placing KBE on the watchlist. Our subscribers can find position details in the watchlist segment of the newsletter.

Our position in the ETFS Physical Palladium Shares ETF (PALL) continues to consolidate near its all time high. We may look to add to the position above yesterday’s high (we will send an intraday alert if any action is taken).

The broad market continues to demonstrate bullish resiliency. However, the majority of ETFs breaking to new highs have not met our strict technical criteria or risk/reward parameters. On a separate note, we are keeping a close eye on Emerging Market, Gold and Gold Related ETFs for potential short entries. All of these ETF classes are approaching resistance (support for inversely correlated ETFs) and may soon provide short opportunities.

Today’s Watchlist:


Shares = 500
Trigger = 27.83
Stop = 26.84
Target = New highs
Dividend Date = n/a

Notes = see commentary above


Shares = 400
Trigger = 32.14
Stop = 31.09
Target = 34.05
Dividend Date = n/a

Notes = see commentary from Feb. 16 report

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.


  • There are no changes to our 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.
    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