--> (SOXL) and (UCO) Primed to Move Higher – The Wagner Daily

(SOXL) and (UCO) Primed to Move Higher – The Wagner Daily

ETFs and market commentary:

Stocks rebounded from Friday’s selloff but on below average trade. All five major indices posted gains. The small-cap Russell 2000 led the advance as it reclaimed the 1.4% loss it incurred on Friday. The S&P erased its 1.1% loss on Friday by posting a 1.1% gain yesterday. The Nasdaq added 1.0%, while the S&P 500 and the Dow Jones Industrial Average added 0.7% and 0.6% respectively.

Market internals ended the session mixed for a third consecutive day. Volume fell by 10.0% on the Nasdaq and 8.1% on the NYSE. However, advancing volume topped declining volume by a spread of 3.2 o 1 on the NYSE and 2.0 to 1 on the Nasdaq.

Yesterday, on a spike in volume, the ProShares Ultra Dow Jones-AIG Crude Oil ETF (UCO) broke above its recent downtrend line and set a new four day high. A volume assisted move back above yesterday’s high of $42.14 could provide a buying opportunity in this ETF. We’re following UCO closely for a potential entry trigger.


Yesterday, the Direxion Daily Semiconductor 3x Bull ETF (SOXL) formed a distinct reversal candle as it undercut its two day low and 10-day moving average. A rally above last Friday’s high of $40.65 could provide a long entry trigger for this ETF. We are placing SOXL on the watchlist. Trade details are available to our members in the watchlist segment of the newletter.


The market continues to show resiliency as buyers stepped in once again on Monday. Nonetheless, Monday’s light volume suggests that institutions were not particularly active during the session. This type of activity is common when markets are consolidating.

Today’s ETF Watchlist:

SOXL
Long

Shares = 200
Trigger = 40.73
Stop = 37.78
Target = 47.00 – 48.00
Dividend Date = n/a

Notes = See commentary from Feb. 10 report

XLU
Long

Shares = 500
Trigger = 35.12
Stop = 34.38
Target = 36.60
Dividend Date = n/a

Notes = See commentary from Feb. 10 report

IAU
Long

Shares = 800
Trigger = 17.13
Stop = 16.47
Target = new swing high
Dividend Date = n/a

Notes = See commentary from Feb. 8 report

PPH
Long

Shares = 300
Trigger = 74.04
Stop = 72.22
Target = new swing high
Dividend Date = n/a

Notes = We’ve been monitoring this trade for potential entry and it remains on our watchlist.

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 DailySubscriber Guide for important, automatic rules on trigger and stop prices

position summary

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

  • No trades were made. 
  • 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.

Stocks:

We added one new position to the Stock Watchlist today in VLTR. We like the explosive price and volume action from the base breakout in mid-January. Since then it has consolidated in a very tight range and is poised to resume its uptrend. We may decide to establish some size on a slight pullback to the original breakout pivot at 31.30. We will send an intraday alert if we do so.


 

NOTE: We are changing the name of the Full-Serve watchlist to the “Stock Watchlist” to reduce confusion so that both newsletters use the same terminology. Because of this, we will no longer have a Self-Serve watchlist.


 

Daily Stock Summary

Below is an overview of all “full-serve” open positions, as well as a performance report on all “full-serve” positions that were closed only since the previous day’s newsletter. Net P/L figures are based on the $50,000 model account size. Changes to open positions since the previous report are listed in red text below.

Having trouble seeing the position summary graphic above? Click here to view it directly on your Internet browser instead.

Notes:

  • OPK triggered first buy entry yesterday.
  • Note the changes to the IACI setup.

Relative Strength Watchlist:

The Relative Strength (or RS) Watchlist makes it easy for subscribers to import data into their own scanning software, such as Tradestation, Interactive Brokers, and TC2000. The list is comprised of the strongest 100 (or so) stocks in the market over the past six to 12 months. The scan is based on the following criteria and is updated every Monday:

  • Stock is in a well defined uptrend, trading above both the 50-day and 200-day moving averages, with the 50-day moving average above the 200-day moving average (both moving averages should be in an uptrend as well).
  • Today’s close is less than 20% off the 52-week high
  • Close is greater than $5.
  • Volume is greater than 200,000 shares per day (using a 50-day volume moving average).

Click here to view this week’s Relative Strength Watchlist in excel

Click here to view this week’s Relative Strength Watchlist as a text file

Follow us on Twitter

Latest Tweets

@MorpheusTrading