Stocks traded in a tight range on Monday as they consolidated for a second consecutive day on light volume. The Nasdaq was the only major index to close in positive territory but the losses incurred elsewhere were slim. The technology rich index ended the session higher by 0.2%. The Dow Jones Industrial Average, S&P 500 and small-cap Russell 2000 all slid 0.2% while the S&P MidCap 400 fell a more modest 0.1% on the day.
For a second straight session market internals finished mixed. Volume was down across the board. Turnover on the Big Board fell by 14% while Nasdaq volume was lower by 22% yesterday. Declining volume outpaced advancing volume on the NYSE by a factor of 1.6 to 1 but on the Nasdaq advancing volume held the advantage by a factor of 1.7 to 1. Monday’s internals suggest another day of consolidation for the market as institutions showed little interest in wholesale buying or selling.
The Global X Uranium ETF (URA) continues to struggle in finding traction off the recent low. Further, this ETF has formed a sequence of lower highs as it rides below its 20-day EMA. This bearish pennant-like formation could invite selling activity should URA lose support of yesterday’s low at $14.71.
The Guggenheim Canadian Energy ETF (ENY) has recently formed a bullish pennant-like formation. Yesterday this ETF sold off on light volume and it appears likely that it may undercut both the 20-day EMA and 50-day Moving Average. A move back above yesterday’s high of $22.99 may provide a buy signal for ENY. We are monitoring ENY closely for a possible buy entry.
Volume was down significantly for the second straight session on Monday. Given last week’s impressive performance it is not unusual to see the type of price and volume action exhibited by the market yesterday. Light volume accompanying price consolidation following a strong rally is generally considered a bullish signal.
There are no official setups this morning. 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
Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.
There were no changes to the open positions section.
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.
Edited by Deron Wagner,
MTG Founder and Head Trader