ETFs and market commentary:
Monday was a good day for Wall Street. Stocks gapped up at the open and never looked back. By the closing bell all five major indices closed more than 1% higher and near session highs. For a second consecutive day the small-cap Russell 2000 led the advance, as it claimed a 2.0% gain. The Nasdaq finished a close second as it improved by 1.8%. Both the S&P 500 and the S&P MidCap 400 added 1.4%, while the Dow Jones Industrial Average tacked on 1.2%. Of the 104 sectors that we track, only coal ended the day lower. Insurance, healthcare and heavy construction were the day’s big winners as each closed higher by 2.5% or more
Market internals were decidedly bullish on Monday. Volume on the Nasdaq was up by 14.0% and on the NYSE by 1.0%. Advancing volume overpowered declining volume by a ratio of 6.1 to 1 on the NYSE and 4.2 to 1 on the Nasdaq. Based on yesterday’s strong price action, higher volume and higher advancing volume, we would characterize the day as an accumulation day for both indices.
Yesterday, on a burst in volume, the iShares MSCI Taiwan Index Fund (EWT) undercut its 20-day MA and recovered to close at session highs. A move above the two day high of $13.54 could provide a buy entry trigger in this ETF. We are monitoring the setup closely for a possible long entry.
Since setting a swing high on March 19th, the iShares Dow Jones Real Estate Index Trust (IYR) has pulled back and held support at its 20-day EMA. On two of the last three sessions, IYR has undercut the 20-day EMA. This price action serves to “shake” weak hands out of the trade and sweep poorly placed stops. If IYR can find its way back above the three day high of $62.06, it could present a buying opportunity in this ETF.
All of our open positions are now in positive territory. EPU broke out of its two month consolidation range and appears ready to make a big move. Above Friday’s high, UGA should also see an increase in buying activity. The Russell 2000 finally broke to a new 52-week high which bodes well for market bulls. We wouldn’t be surprised to now see money begin to flow out of large cap issues and into small issues. The Russell should lead the next leg higher.
Today’s ETF 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
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.
Per intraday alert, we took some profits off the table by selling RGR into strength, locking in a 1% gain in the model portfolio. For those who missed the alert selling at the open tomorrow is fine. We were quite busy in the morning due to the market gapping higher. We added three new positions to the portfolio, with two out of three closing in great shape.
For those of you who are new subscribers please contact me at [email protected] if you have any questions regarding strategy, money management, or how to make the most out of this report.
Today’s Stock 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 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:
- Per intraday alert, sold RGR to lock in a 1% gain in the portfolio. We made five more points by re-entering the position on 3/22. Bought VVUS and CPHD over the 5-minute high. Bought TSLA on an intraday pullback.
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