market timing model: BUYCurrent signal generated on close of Feb. 13.

Portfolio exposure can be anywhere from 50% to 100% long (or more), depending on how open positions have held up.

Past signals:

• Sell signal generated on close of February 3.
• Neutral signal generated on close of January 24.
• Buy signal generated on close of November 13
• Buy signal generated on close of September 9
• Neutral signal generated on close of August 15
• Buy signal generated on close of July 11
• Neutral signal generated on close of July 5
• Sell signal generated on close of June 24

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today’s watchlist (potential trade entries):

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open positions:Below is an overview of all open positions, as well as a report on all positions that were closed only since the previous day’s newsletter. Changes to open positions since the previous report are listed in pink shaded cells below. Be sure to read the Wagner Daily subscriber guide for important, automatic rules on trade entries and exits.

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closed positions:

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ETF position notes:

• No setups triggered. Looking to go short $EWZ via $BZQ with small size.

stock position notes:

• $RSOL buy stop triggered.

ETF, stock, and broad market commentary:The Nasdaq Composite joined the Nasdaq 100, with a clear breakout to new highs on higher volume Tuesday. As mentioned in yesterday’s report, tech stocks continue to lead the market higher. Small cap stocks joined in as well, with the Russell 2000 now well above the 50-day MA. The Dow Jones is the only index yet to extend much beyond the 50-day MA.

The relatively weak financial sector will need to get going for the S&P 500 to catch up to the Nasdaq. Currently, big cap financial stocks such as $BAC, $JPM, and $WFC are holding up. But $GS and $C are trying to recover from an ugly selloff in January.

iShares Transportation ETF ($IYT) failed to hold above the 50-day MA on Tuesday, and may need to test the prior swing low before it can head significantly higher.

Silver mining stocks exploded higher last week on big volume. We must now wait for a bullish consolidation to develop in the silver mining ETF ($SIL) once the current momentum fades.

We have one new setup on today’s watchlist and it is on the short side. Emerging markets have been relatively weak for quite some time, with iShares Brazil ($EWZ) being one of the weakest in the sector. The weekly chart below shows $EWZ breaking down to new 52-week lows and bouncing into resistance.

To make it easier for all subscribers to participate on the short side, we will be buying the Ultrashort Brazil ETF ($BZQ), which allows us to short by going long an inverted ETF. On the daily chart below, $BZQ has held the 20-day EMA with a slight undercut last week. Trade details can be found in the watchlist section above.

We will be monitoring the action in $EWZ for a target on the short side. The monthly chart shows several months of support around $30, which is where we plan to take profits off the table (if the setup triggers).

On the stock side we could definitely use a few days of sideways action in the market to produce low risk entry points. There isn’t much to do in terms of new entries in core type setups, so we must be patient. A few A rated stocks that we are monitoring for a pullback are: $KORS, $INVN, $AL, and $IRBT.

$SCTY broke out ahead of earnings yesterday on big volume. We plan to hold through earnings with the current half position.

We raised the stop once again in $WDAY to lock in profits ahead of earnings. $WDAY does not have A rated fundamentals, so we do not want to hold through the report. If earnings were not around the corner, then we would let the setup play out with a stop below the 50-day MA and potentially move it up to the 10-day MA once the price action is extended on the daily chart.