Potential short setup in (ILF)


The market closed higher on Thursday, but volume was off. All five major indices finished in positive territory, with the Nasdaq leading the way. The tech rich index closed the day higher by 0.6%. The S&P MidCap 400 tacked on 0.5%, while the S&P 500 and the small-cap Russell 2000 both improved by 0.2% in yesterday’s action. For the second consecutive session, the Dow Jones Industrial closed fractionally higher.

Volume was down on Thursday. On the NYSE volume drifted lower by 8.4%, while the Nasdaq saw turnover decrease by a modest 0.6%. Advancing volume held the upper hand on Thursday, as it outpaced declining volume by 1.5 to 1 on the NYSE and 2.0 to 1 on the Nasdaq.

The iShares S&P Latin America 40 Index (ILF) is close to losing major support. Yesterday, on a big spike in volume ILF opened near the session high and closed near the session low. A break below Thursday’s low of $51.97 provides a potential short trigger for this ETF. We are placing ILF on the watchlist. Trade details are provided for our members in the watchlist segment of the newsletter.

Since losing Support on January 24th, the iShares MSCI Thailand Investable Market Index ETF (THD) has spent the past three sessions rallying back towards resistance. A move back into the $61.00 – $62.00 range offers a possible short trigger for this ETF.

Over the past three weeks the Regional Bank HOLDRS ETF (RKH) has been consolidating in a bullish pennant like formation. A volume fueled rally above the January 21st high of $88.63 may provide a buying opportunity in RKH.

The market continues to plod higher but without broad participation. There is clear evidence of money rotating among sectors. Broad market volume continues to remain weak.

Today’s Watchlist:


Shares = 300
Trigger = 51.89
Stop = 53.27
Target = 48.75
Dividend Date = n/a

Notes = See commentary above

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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  • Since UNG closed near our stop we will be using a modified version of our gap rules to manage the position today. The new stop will either be the original stop of $5.83 OR 7 cents below the low of the first 20 minutes, whichever is lower.
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      Edited by Deron Wagner,
      MTG Founder and
      Head Trader