Time To Be Nimble – (EEV)


Stocks ended Friday’s whipsaw session lower on mixed trade. In a reversal of Thursday’s action, high beta stocks led the market lower as the S&P MidCap 400 and the small-cap Russell 2000 shed 1.6% and 2.6.% respectively. The tech rich Nasdaq fell 1.1% while the S&P 500 slid 0.8%. The Dow Jones Industrial Average showed relative strength on the day as it only fell 0.2%.

Market internals were mixed for a third consecutive day. Volume slid on the Nasdaq by 6.9% but climbed on the NYSE by 3.3%. However, declining volume topped advancing volume by 4.0 to 1 on the NYSE and 3.0 to 1 on the Nasdaq. Friday’s middling internals point to a lack of institutional participation on the session. Still, the NYSE did close near session lows on higher volume suggesting that bears are still in control of the Big Board.

Via an intraday alert we entered a long position in the UltraShort Real Estate ProShares ETF (SRS) after it undercut and reclaimed support of its 20-day EMA. Trade details are available to our subscribers in the open position segment of the newsletter.

In Friday’s newsletter we discussed the ProShares UltraShort MSCI Emerging Markets ETF (EEV) and stated, “The formation of a reversal candle would provide an ideal setup for a possible long entry in this inverse ETF“. On Friday EEV formed a reversal candle as it gapped down, undercut its 20-day EMA and reversed on a spike in volume to close near session highs. We are placing EEV on the watchlist. Trade details are available to our subscribing members in the watchlist section of the newsletter.

Despite our bearish leanings, last Tuesday’s market reversal has us on guard for a potential bullish follow through day in the market. We are prepared to take profits quickly in any short positions should the market put in an accumulation day anytime this week.

Today’s Watchlist:


Shares = 200
Trigger = 43.46
Stop = 40.33
Target = 49.30
Dividend Date = n/a

Notes = See commentary above

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 Daily Subscriber Guide for important, automatic rules on trigger and stop prices

    position summary

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  • Per intraday alert, bought 300 shares of SRS.
  • 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.
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      Edited by Deron Wagner,
      MTG Founder and
      Head Trader