Commentary:
Stocks ended Wednesday’s session modestly higher but volume was lower. All five major indices closed in the black with the S&P MidCap 400 leading the way (up 0.5%). The Nasdaq and the small-cap Russell 2000 both tacked on 0.4% gains, while the S&P 500 ended the day up 0.2%. The Dow Jones Industrial Average was the day’s laggard as it sputtered to finish just above par. The blue chip index rose by just under 0.1% for the session.
Market internals were mixed on Wednesday. Volume dropped by 10.3% on the Nasdaq and by 10.8% on the NYSE. However, the advancing volume to declining volume ratio finished positive on both indices. The ratio ended the day at 1.6 to 1 on the NYSE and 1.4 to 1 on the Nasdaq. Wednesday’s mixed internals point to a lack of institutional involvement in the market.
Yesterday we opened a short position in the Retail HOLDRS ETF (RTH). An intraday alert was sent to our membership outlining the trade details. Both EWY and XHB remain on the watchlist as potential short setups.
Over the past nine sessions the SPDR Series KBW Bank ETF (KBE) has been under enormous selling pressure. This ETF is now trading well below its 20-day EMA and 50-day MA. A move below yesterday’s low of $25.76 may provide a shorting opportunity in KBE.
The Global X Uranium ETF (URA) has recently lost support of a three month uptrend line. On February 22nd this ETF plummeted on a big spike in volume. Since then it has rallied back into resistance at the 20-day EMA and the 50-day MA. A move back below the 2 day low of $20.63 could provide a short entry trigger for this ETF.
Following a big distribution day in the market, it is not surprising that Wednesday’s action was somewhat muted. On the aggregate market leaders appear to be struggling, as our daily research has been uncovering very few long setups.
Today’s Watchlist:
EWY
Short
Shares = 400
Trigger = 57.06
Stop = 58.37
Target = 53.55
Dividend Date = n/a
Notes = see commentary above
XHB
Short
Shares = 1,000
Trigger = 17.23
Stop = 17.77
Target = 16.10
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
- Per intraday alert, we established one new short position in RTH.
- 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.
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Notes:
Edited by Deron Wagner,
MTG Founder and
Head Trader