ETFs and market commentary:

For the most part, stocks finished higher on Friday on mixed trade. Higher beta issues struggled as the small-cap Russell 2000 and the Nasdaq closed lower by 0.2% and 0.1% respectively. The S&P MidCap 400 ended the session flat, while the NYSE, Dow Jones Industrial Average and S&P 500 tacked on modest gains of 0.5%, 0.5% and 0.4% respectively. Heavy construction, internet services and airlines showed relative weakness yesterday, while insurance, healthcare and oil services saw relative strength.

Market internals ended the day positive across the board. Trade finished higher on the NYSE by 1.8% and on the Nasdaq by 2.5%. Advancing volume topped declining volume across the board. Despite its lower close, the ratio of advancing to declining volume ended at a plus 1.4 to 1 on the Nasdaq. The NYSE saw the day end with the ratio at a plus 2.1 to 1. Market internals point to an accumulation day on the NYSE, while the Nasdaq narrowly avoided a distribution day.

Last Thursday, the SPDR S&P Regional Bank ETF (KRE) set a higher low, as it formed a reversal candle on bigger volume. Further, it tested and held support of its 20-day MA. A move above the two day high of $28.78 could present a buying opportunity in this ETF.

On March 29, the iShares Dow Jones Select Dividend ETF (DVY) formed a reversal candle on a big burst of volume. In addition, it tested and held support of its 20-day EMA. On Friday, DVY offered an early pullback entry as it rallied above Thursday’s reversal candle. However, DVY also offers a buy entry over Friday’s high of $56.07. Alternatively, DVY could pull back once more and provide another pivot entry point. We are monitoring this ETF carefully for a possible long entry trigger.

Our open positions held up well last week. EPU made a powerful move on Friday as it set a new 52-week high. If we see another big move in EPU on Monday we will likely lighten up on our position. IYR also performed well after testing our staying power last Thursday. UWM struggled on Friday and retested support of its 20-day MA, but it did so on light volume. UGA continues to consolidate at its recent highs. We like the way the major indices finished the week as they showed signs of recovering from distribution early in the week. Still, the market has struggled recently and we must be mindful of further distribution. We would like to see a big accumulation day early this week as confirmation that bulls are still firmly in control of the market.

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 support@morpheustrading.com if not already set up for this value-added feature we provide to subscribers.
  

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Stocks:

 

The majority of our stocks held up well during the market pullback. We swapped out two stocks that were not moving (RNDY and VFC) and put the money to use in CPWM, REGN, and FTNT. For those who missed the alert in FTNT, it is now buyable above the March 30 high at 28.21 with the same stop listed in today’s report.

Stocks we are watching this week: VOXX, KORS, XPO, GUID (low volume), and MDVN. These stocks are not listed in the watchlist because they are not official buys, as we are monitoring the action for low-risk entry points to develop.

 

For those of you who are new subscribers please contact me at rick@morpheustrading.com 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:

• REGN and CPWM triggered off the Stock Watchlist. Per intraday alert, bought FTNT and sold RNDY and VFC to make room for new entries. VFC and RNDY were not performing as expected so we cut both positions at/near break-eeven levels.

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