Continuation breakout in (URE)


Stocks moved higher Monday, but trade was light. The small-cap Russell 2000 and the S&P MidCap 400 led the rally, as both rose by 0.9% on the day. The Dow Jones Industrial Average and the S&P 500 both climbed by 0.6%, while the Nasdaq ended the session higher by 0.5%. However, there was selling pressure into the close.

Volume was down on Monday. Turnover slid by 11% on the NYSE and by 3.2% on the Nasdaq. On a positive note, the advancing to declining volume ratio finished the day positive on both indices. The ratio on the NYSE was 3.1 to 1, and on the Nasdaq 2.4 to 1.

UNG gapped down yesterday and eventually hit our stop. The trade was exited at a loss. IJT hit its trigger early in the session and we entered the position. After a false breakout on Friday, PALL consolidated in a tight range on light volume. Following a failed breakout, this type of price and volume action is generally considered bullish. ILF and ECH continue to demonstrate relative weakness to the broad market.

The Ultra Real Estate ProShares ETF (URE) appears to be ready for a move to higher ground. On a volume fueled advance back above yesterday’s high of $55.25, URE may provide a buying opportunity. We are maintaining close watch of URE for a possible long entry.

The S&P Select Utilities SPDR ETF (XLU) has been consolidating for the past twelve sessions in a bullish flag like formation. A move above $32.05 could present a long trigger for this ETF.

Despite a fairly good move in the market on Monday, the action seemed to lack conviction. The light volume and end of day selling muted what could have been a very strong day on Wall Street. We suggest caution due the overall lack of follow through in the broad market.

Today’s Watchlist:

There are no new official setups for today. 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

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  • IJT long setup triggered. UNG triggered its gap-adjusted stop price at 5.57, which was 7 cents below the opening 20-minute low.
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      Edited by Deron Wagner,
      MTG Founder and
      Head Trader