Morpheus Trading Group

Wagner Daily Lite – Feb. 23, 2012 ($EEM, $XHB, $IAU)

Deron — Thu, 23 Feb 2012 13:29:34 +0000

Stocks closed lower on lighter trade yesterday. All five major indices closed in the red, led by a 0.8% drop in the small-cap Russell 2000. The Nasdaq slid 0.5%, while the S&P MidCap 400 faded 0.4%. The S&P 500 and the Dow Jones Industrial Average fell 0.3% and 0.2% respectively. The coal, real estate, banking and construction sectors took the brunt of the punishment on Wednesday. A few of the bright spots included, oil services, gold mining and consumer finance.

Market internals were negative yesterday, but light volume prevented a distribution day. Turnover slid by 6.3% on the Nasdaq and 8.1 % on the Big Board. Declining volume topped advancing volume across the board by a factor of 2 to 1.

In early February, the iShares MSCI Emerging Market Index ETF (EEM) rallied above resistance of its long term downtrend line and 200-day MA. Since breaking out, EEM has been consolidating in a tight range above the 200-day MA and now offers two potential long entry alternatives. EEM could offer a buying opportunity on a breakout above the three day high near $44.10 or on a pullback and undercut of its 20-day EMA. If we enter this trade, an Intraday Trade Alert with specific entry and stop price will be e-mailed to subscribers of The Wagner Daily:

Yesterday, the SPDR S&P Homebuilders ETF (XHB) saw a distribution day, as it sold off on increasing volume. XHB is now clinging to support just below its 20-day EMA. If XHB does not reverse off of this support level, it will likely find support at its uptrend line. A pullback into the uptrend line could provide a buying opportunity in XHB, but a better alternative would be for XHB to hold support and form a reversal candle at the 20-day EMA:

Our open position in iShares Gold Trust (IAU) performed admirably yesterday, but is getting close to a key resistance level near $17.60. We will likely be looking to at least lighten up on the position if it trades near this mark. As for the broad market, it continued to struggle yesterday, but key support levels remain intact on all of the major indices. For the moment, a pullback seems likely and may be what is needed before the market potentially makes another move higher.

The commentary above is an excerpt from our nightly Wagner Daily newsletter. Subscribing members receive detailed entry and exit prices for our swing trade setups, additional annotated ETF and stock charts, technical market commentary, and access to our Live Trading Room. Click here to become a member for as low as $58 per month. Your full satisfaction is guaranteed.

US stock pick video for February 23, 2012 ($CAT, $VPHM, $RAX, $BPI)

Rick — Thu, 23 Feb 2012 02:43:25 +0000

For detailed entry and exit points of the stocks discussed in the video, become a subscriber of The Wagner Daily newsletter at MorpheusTrading.com

Review of recent swing trade in Akorn Inc. ($AKRX)

Deron — Wed, 22 Feb 2012 14:26:36 +0000

On the morning of January 31, we listed AKRX as a potential buy setup with the exact entry price, stop price, share size and target price for subscribers of The Wagner Daily. The chart below details the bullish setup on that date, as well as our entry point:

The chart below illustrates the subsequent price action after our entry:

After a two-candle pullback off the swing high, we sold AKRX into the bounce on Feb. 16 to protect gains, due to the lack of follow-through in most breakouts this month. While all traders would love to exit every position near the highs of a swing move, we know it is practically impossible to do consistently. Rather, our job as swing traders is simply to catch the “meat of the move,” which is exactly what we did by selling AKRX when it was up 9%. Put another way, we locked in a gain on 70% of the move, as measured from our entry point to the Feb. 13 swing high.

To participate in our next big winner, click here to get started with your membership to our nightly swing trading newsletter, from just $58 per month. Full satisfaction guaranteed.

US stock pick video for February 22, 2012 ($IBM, $WFM, ULTA, $MIND, $TSS)

Rick — Wed, 22 Feb 2012 12:09:59 +0000

For detailed entry and exit points of the stocks discussed in the video, become a subscriber of The
Wagner Daily newsletter at MorpheusTrading.com.

Wagner Daily Lite – Feb. 22, 2012 ($SRS, $OIL)

Rick — Wed, 22 Feb 2012 11:21:45 +0000

For the second time in as many days, stocks ended the session mixed. The major indices were under pressure for most of the session but a late day rally salvaged what could have been a very negative day on Wall Street. For the most part the broad market held up well but there were signs of selling into strength. This is the second time we’ve seen this type of price action in the past seven sessions. The DJIA and the S&P 500 showed the most resiliency as both indices closed higher by 0.1%. The Nasdaq shed 0.1% while the S&P MidCap 400 and small-cap Russell 2000 dropped 0.4% and 0.7% respectively. The top performing sectors included gold, gold miners, oil & gas, computer hardware and internet services. Underperforming sectors included retail, airlines, biotechnology, semiconductors and homebuilders.

Internals ended mixed on Tuesday. Volume slid by 7.2% on the Nasdaq and 13.1% on the NYSE. However, advancing volume managed to outpace declining volume by a ratio of 1.1 to 1 on the Big Board. On the Nasdaq, declining volume held the upper hand by a factor of 1.8 to 1.

Since October of 2011, the ProShares UltraShort Real Estate ETF (SRS) has been in a significant downtrend. However, over the past 2.5 weeks, SRS has been consolidating in a tight range as it has set a sequence of higher lows. Further, SRS has rallied above its 10-day MA and is now poised to break above its 20-day EMA. A volume fueled move above yesterday’s high of $32.41 could provide a buying opportunity in this ETF.

Over the past two weeks the iPath Goldman Sachs Crude Oil ETN (OIL) has been showing relative strength to the broad market. Yesterday, OIL broke to new highs on a massive spike in volume. The ideal entry point for this trade would have been on February 13th when OIL broke above its short term downtrend line. Now that OIL has surged higher, it is not advisable to “chase the trade”. Instead, we will be looking at a possible long entry into a pullback. An undercut of support near $26.30 could provide a buy entry for this ETN. We are montoring OIL closely for a possible long entry.

We exited our long positions in DVY and SOXL yielding solid profits. We also exited XLU for a small loss. We made a judgment call to reduce our exposure to the market due to the negative price action in the early afternoon session. In addition, SOXL and XLU were exhibiting relative weakness and it therefore made sense to exit both trades given market conditions. IAU hit its adjusted trigger and we entered the trade yesterday. IAU closed at the high of the session. Although we remain bullish on the market, it appears that we could see a pullback, or at a minimum, sector rotation. We believe that it is best to stay mostly in cash until new setups develop.

The commentary above is an excerpt from our nightly Wagner Daily newsletter. Subscribing members receive detailed entry and exit prices for our swing trade setups, additional annotated ETF and stock charts, and additional technical market commentary. Click here to become a member for as low as $58 per month. Your full satisfaction is guaranteed.

New York Traders Expo

Deron — Tue, 21 Feb 2012 21:13:56 +0000

I just wrapped up my workshop at the New York Traders Expo. Was a great session with more than 60 traders in attendance. Enjoyed meeting some of our subscribers in person. Thanks to all who attended. Now, off to the Live Q&A Cocktail Hour I am hosting in an hour.

Deron

US stock pick video for February 21, 2012 ($ULTA, $MIND, $RPTP)

Rick — Tue, 21 Feb 2012 14:17:32 +0000

For detailed entry and exit points of the stocks discussed in the video, become a subscriber of The Wagner Daily newsletter at MorpheusTrading.com.

Wagner Daily Lite – Feb. 21, 2012 ($XOP, $IYR)

Rick — Tue, 21 Feb 2012 04:01:50 +0000

Stocks ended the session mixed on Friday as volume quickened. Bigger cap issues showed strength as high beta issues struggled. By the closing bell the Dow Jones Industrial Average and the S&P 500 posted gains of 0.4% and 0.2% respectively. The S&P MidCap 400 and the small-cap Russell 2000 both slid 01.%, while the Nasdaq demonstrated the most weakness as it fell 0.3% on the day. Sectors showing strength included, retail, banking defense. The biotech sector got blistered on Friday, as it sank almost 4.0%. Other losers included non ferrous metals, gold miners, coal miners, airlines and steel.

Market internals ended the day mixed. Volume increased on the Nasdaq by 1.5% and on the NYSE by 11.3%. Declining volume outpaced advancing volume on the Nasdaq by a factor of 1.2 to 1, but on the NYSE advancing volume held the upper hand as it upped declining volume by 1.2 to 1. The Nasdaq experienced its first distribution day in quite some time, as both total volume and declining volume were higher on the technology rich index. However, the NYSE escaped a distribution day due to its mixed internals.

The iShares Dow Jones US Real Estate Index ETF (IYR) has been in pullback mode since setting a swing high on February 3, 2011. A move above Friday’s high of $61.43 could provide a possible buy entry trigger for this ETF.

The SPDR S&P Oil & Gas Exploration ETF (XOP) has recently broken out from an 8 month base above its 200-day MA. Currently, XOP does not offer a reasonable entry due to how far it is extended above its 10-day and 20-day moving averages. However, on a pullback XOP could offer a possible buy entry. An undercut of the 10-day and/or 20-day moving average(s), followed by a reversal candle would present an ideal long setup for this ETF.

Our open positions put in a mixed performance on Friday. DVY held relative strength while both XLU and SOXL closed near session lows. For the moment however, none of the positions are in danger of stopping out and as long as we avoid a series of distribution days, all of these positions appear ready to move higher. Friday marked the first distribution day in the Nasdaq in nearly a month.

The commentary above is an excerpt from our nightly Wagner Daily newsletter. Subscribing members receive detailed entry and exit prices for our swing trade setups, additional annotated ETF and stock charts, and additional technical market commentary. Click here to become a member for as low as $58 per month. Your full satisfaction is guaranteed.

Where is the stock market headed next? (video of Feb. 15 webinar)

Deron — Sat, 18 Feb 2012 00:38:29 +0000

On February 15, we presented a live online webinar where we took an objective look at the technical state of the main stock market indexes. We also discussed the best ETFs and stocks setting up for potential buy entry in the near-term. It was a fun and educational session with a large number of attendees. But if you missed it, you’re in luck because we recorded the session and it is now available for review by clicking below:

Since it is a 3-day holiday weekend, spend about 45 minutes honing your trading knowledge, while providing yourself with future trade ideas as well.

To receive our top daily ETF and stock picks for swing trading, sign up for The Wagner Daily newsletter.

Enjoy!

Stock pick video for February 17, 2012 ($APPL, $CTAS, $JAZZ)

Rick — Fri, 17 Feb 2012 14:18:04 +0000

For detailed entry and exit points of the stocks discussed in the video, become a subscriber of The Wagner Daily newsletter at MorpheusTrading.com