Commentary:
After a poor start, stocks closed well off session lows but trade was light. Four of the five major indices ended the day modestly lower but the S&P MidCap 400 managed to eke out a 0.1% gain. The small-cap Russell 2000 closed down by 0.7% while the S&P 500 dropped 0.6%. The Dow Jones Industrial Average and the Nasdaq fell 0.5% and 0.4% respectively. The market closed slightly down for the week.
Internals were mixed on Friday. Volume finished lower on the Nasdaq by 8.3% and on the NYSE by 18.7%. However, declining volume outpaced advancing volume by 1.8 to 1 on the NYSE and 1.2 to 1 on the Nasdaq. The light volume suggests that institutions were not actively participating in the day’s action.
For the past four sessions the Vanguard REIT ETF (VNQ) has been consolidating in a two point trading range just below its 200-day MA. A volume fueled rally above the two day high of $58.29 could offer a buying opportunity in VNQ.
Since a failed breakout attempt above the 200-day MA on October 27th, the iShares Russell 1000 Growth Index ETF (IWF) has been consolidating between its 20-day EMA and 200-day moving average. A thrust above the two day high of $58.94 could provide a buy entry trigger for IWF. We are monitoring this ETF closely for a possible buy entry.
The market closed slightly lower on the week but this type of price action could be expected given the big run up that has occurred since the August 4th reversal. More and more stocks seem to be emerging as potential breakout candidates. The more the market consolidates at the current levels, the more likely the next significant move will be higher.
Today’s Watchlist:
There are no official setups for today. As always, we will send an intraday alert if any new trades are made.
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
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Notes:
Edited by Deron Wagner,
MTG Founder and
Head Trader
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.…