Commentary:
Stocks climbed their way back from early losses to end higher on the day, but on mixed trade. All five major indices closed in positive territory with the Nasdaq claiming its sixth consecutive winning session. The technology rich index posted a 0.5% gain on the day. The small-cap Russell 2000 forged higher by 0.4%, while the Dow Jones Industrial Average, S&P 500 and S&P MidCap 400 all posted modest 0.2% gains.
For a second straight day market internals were mixed. Volume dropped on the Nasdaq by 3.0% but climbed on the NYSE by 1.9%. Also for a second consecutive day, advancing volume outpaced declining volume across the board. On the Nasdaq, up volume outpaced down volume by 2.0 to 1 and on the NYSE by 1.5 to 1. Although we would not officially label Thursday as an accumulation day, the price action was reasonably bullish.
Yesterday, via an intraday alert we entered a long position in the Direxion Small Cap Bull 3x (TNA). We liked the trade because TNA sold off, tested the three day low, and reversed on a big spike in volume to close at session highs. Further, it closed above resistance at the two day high. The trade also closed in the money. Trade details are posted for our subscribers in the open positions segment of the newsletter.
The iShares S&P Global Tech Sector I ETF (IXN) has been consolidating above its 200-day MA for the past eight sessions. A volume assisted move above the three day high of $60.41 could present a buying opportunity in this ETF. We often look for false breakouts and retests of support to provide the pivot points for potential trade entries. We are placing IXN on the watchlist. Trade details are available to our members in the watchlist section of the newsletter.
Wednesday brought another round of traders buying on pullbacks. We often discuss that we do not trade news. Today was an excellent example of why we avoid the media. Today’s news was primarily negative as weekly jobless claims increased and December retail sales were worse than expected. Nonetheless, the market rallied in the face of this negative news, and the SPDR S&P Retail ETF (XRT) closed higher on the day. The market continues to flash bullish signals and appears headed higher.
Today’s Watchlist:
XRT
Long
Shares = 250
Trigger = 53.21
Stop = 51.17
Target = 55.50 – 56.00 area (will send alert)
Dividend Date = n/a
Notes = see commentary from Jan. 9
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 $50,000Wagner 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:
- Per intraday alert, bought the Small Cap Bull 3x ETF (TNA).
- 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’sWagner 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.
Edited by Deron Wagner,
MTG Founder and Head Trader