--> Strong breakout setup in shipping ETF ($SEA)

Strong breakout setup in shipping ETF ($SEA)

market timing model: BUY

Current signal generated on close of November 13.

Portfolio exposure can be anywhere from 75 to 100% long. If positions are holding up well, then one can add exposure beyond 100%.

Past signals:

    • Neutral signal generated on close of November 6.
    • 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

(click here for more details)

today’s watchlist (potential trade entries):

$todays watchlist
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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.

$todays watchlist
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closed positions:

open position summary
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ETF position notes:

  • $SOCL, $FCG, and $SEA buy stops triggered. We remain long $PSP with a dividend adjusted stop.

stock position notes:

  • $IRBT and $WDAY buy entries triggered. $MCHP buy setup is canceled for now.


ETF, stock, and broad market commentary:

Stocks closed out a strong week with solid gains across the board. The NASDAQ Composite, S&P 400, S&P 500, and Dow Jones all hit new 52-week highs on Friday. The small cap index Russell 2000 finished with an impressive 1.9% advance, setting a new closing high for the year.

Turnover was very strong, but this was due to Friday’s options expiration. That being said, volume was quite strong all week, highlighted by a big volume advance in the NASDAQ on Dec. 18.

Our scans continue to produce bullish chart patterns, so with the market back in trend mode it is just a matter of waiting for low risk entry points to develop.

Last Friday, we established a buy entry in Guggenheim Shipping ETF ($SEA) on breakout above the two-day high. We really liked the bullish consolidation that formed around the 50-day MA, especially when the price action tightened in December.

$SEA breakout

After clearing prior highs at $19 and breaking the current range high at $20.50, there is very little resistance until the $24 area, so we might be able to hold on to the position for a 15% to 20% move.

We added to our current long position in Global X Social Media ETF($SOCL) on Friday (entry #2), as it cleared the high of the bullish reversal candle on Dec. 18. Our first entry was on Dec. 8, as $SOCL climbed back of the 50-day MA.

$SOCL CUP AND HANDLE BREAKOUT

The price action since Dec. 11 appears to be forming a handle. A handle is a tight range that is at least one week in length (can be several weeks or more) that develops usually 5% to 10% off a base high.

The current handle in $SOCL is eight days in length. Look for a breakout above the high of Dec. 10 to confirm the pattern.

Please note the lower entry price in the $PGJ buy setup on the watchlist above. $PSP paid out a 62 cent dividend last Friday, and we remain long with a dividend adjusted stop.

On the stock side, $IRBT and $WDAY buy entries triggered. We also canceled the $MCHP buy limit order for now.

For those who have yet to enter $SLCA, it appears to be finding a bottom around $32. One could establish an entry above the three-day high using our current stop. If $SLCA can reclaim the 50-day MA, then we could see some fireworks in January if the/when the price action clears the daily downtrend line.

$SLCA DOWNTREND LINE BREAKOUT

$NOAH has formed a tight range at the 50-day MA. A move above last week’s high and the 50-day MA could lead to a short-term rally to $23. This is not an official setup, just an idea for those who might be looking for a short-term trade.

$NOAH BREAKOUT AT 50MA

We are also monitoring A setups, $FB, $YNDX, $UA, and $ALGN for an entry on a short-term pullback.

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