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
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Notes:
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.
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Notes:
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:
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
market timing model: BUY Signal generated on close of Sept. 21 Market timing model is…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…
market timing model: BUY Signal generated on close of Sept. 21 On a buy signal.…