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Top stock and ETF trade setups for swing trade entry (recording of live webinar)

March 22, 2012

On March 21, 2012, we presented a live online webinar, where we discussed potential stock and ETF trade setups to consider for swing trading in the coming days. We also took an objective look at the technical state of the broad market. This is a recording of that live webinar (watch in HD mode for best quality – select “720p” on the gear icon):

Stock pick video for March 22, 2012 ($USO, $BIDU, $SWI, $EPU) $$

March 22, 2012

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 – Market Takes a Breather ($XLB) ($TBT)

March 22, 2012

Equities traded mixed on Wednesday on slightly higher trade. For much of the session all five major indices traded modestly higher but late selling pressure pulled three of the five indices into the red. The Dow Jones Industrial Average was the biggest loser on the day, as it fell 0.4%. The S&P 500 and the S&P MidCap 400 shed 0.2% and 0.1% respectively. The small-cap Russell 2000 showed the most strength on the day. The high beta index closed the session up 0.1%, while the Nasdaq closed fractionally higher. Non ferrous metals, transportation and telecommunication all fared well yesterday, while oil services, insurance and gold all struggled.

In what has become a common pattern lately, market internals ended the day mixed. Volume on both exchanges closed up by 1.7%. However, declining volume outpaced advancing volume on the NYSE by 1.2 to 1, while on the Nasdaq advancing volume topped declining volume by 1.1 to 1. The NYSE actually posted a distribution day yesterday, as it fell 0.3% on higher volume and higher declining volume. Although the Nasdaq saw higher volume and higher advancing volume, its price action was not strong enough to qualify for an accumulation day. Generally we like to see an index close higher by 0.3% or more to qualify for an accumulation day.

Since setting a swing high on March 19th, the ProShares UltraShort Lehman 20+ Bond Fund (TBT) has pulled back over the past two sessions and is nearing support of its 10-day MA. An undercut of the 10-day and/or 20-day moving averages could present a buying opportunity in TBT. We will be watching for a reversal candle to form near either of these two moving averages, as a signal for a potential pullback long entry.


Over the past two sessions, the S&P SPDR Select Materials Fund (XLB) has formed back to back reversal candles as it has tested support of its 20-day and 50-day Moving averages. A volume assisted move above yesterday’s high of $37.27 could present a buying opportunity in XLB.

The market struggled to find direction yesterday. We wouldn’t be surprised to see similar price action for several days before potentially resuming the broad market uptrend.

The commentary above is a partial excerpt from The Wagner Daily, our nightly stock and ETF swing trading newsletter. Subscribing members additionally receive specific entry and exit prices for all swing trade setups, more technical market commentary, annotated ETF and stock charts, and access to our Live Trading Room. Click here to become a member for less than $2 per day (based on annual subscription). Your full satisfaction is guaranteed.

Wagner Daily Lite – Peru ($EPU) Ready to Breakout?

March 21, 2012

Stocks recovered from a morning gap down to close lower but well off session lows, on light trade. Small cap stocks suffered the most yesterday as the Russell 2000 and the S&P MidCap 400 shed 1.0% and 0.7% respectively. The Dow Jones Industrial average lost just over 0.5% while the S&P 500 closed down by 0.3%. Led by strong a strong recovery by AAPL and a strong performance by AMZN, the Nasdaq showed the most resiliency on the day as it finished lower by a scant 0.1%. Airlines, retailers and banks fared well on the day, while the coal, oil services and transportation sectors struggled.

Over the past three weeks the iShares MSCI All Peru Capped Index (EPU) has been consolidating in a tight range as it has set a sequence of higher lows. Yesterday, EPU formed a big reversal candle as it undercut the 20-day EMA but managed to recover and close in the upper 25% of its intraday range. A volume fueled move above the two day high of $44.88 could provide a buying opportunity in EPU. We are placing EPU on the watchlist. Trade details are provided for our subscribers in the watchlist section of the newsletter.

The commentary above is a partial excerpt from The Wagner Daily, our nightly stock and ETF swing trading newsletter. Subscribing members additionally receive specific entry and exit prices for all swing trade setups, more technical market commentary, annotated ETF and stock charts, and access to our Live Trading Room. Click here to become a member for less than $2 per day (based on annual subscription). Your full satisfaction is guaranteed.

Stock pick video for March 21, 2012 ($BIDU $UGA, $JJC) $$

March 20, 2012

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 buy entry into Real Estate ETF ($IYR)

March 20, 2012

Long-time followers of our swing trading strategy know we seek to buy stocks and ETFs with relative strength to the main stock market indexes when the broad market is in an uptrend. Two weeks ago, we detected relative strength and a solid consolidation pattern setting up in iShares Real Estate Index ETF ($IYR).  As such, we began stalking IYR for potential swing trade buy entry. The chart below details the technical buy setup prior to our entry:

Because of the clearly defined short-term downtrend line off the highs of the dominant uptrend, we notified subscribers of The Wagner Daily that we would be entering IYR on a breakout above that downtrend line, which occurred on March 12:

On the day of our buy entry (March 12), IYR rallied above the short-term downtrend line. The volume pattern confirmed the move, as turnover was higher than the prior day’s session, and well above the 50-day moving average of volume. The upside follow-through was immediate, as IYR exploded higher on big volume the very next day. Presently, we remain long IYR with a profit that is two times greater than our initial risk, giving us our intended 2 to 1 reward-risk ratio. Now, we will look to sell into strength to lock in gains, while trailing the stop higher to protect the profit. If you’re not yet a subscriber and missed the initial entry, a small pullback to the $62 area (near the March 19 low) would provide a secondary buy entry, albeit with a lower reward-risk ratio.

To participate in our next big winner, click here to get started with your membership to our nightly swing trading newsletter today, from less than $2 per day (based on annual subscription). 

Stock pick video for March 20, 2012 ($RGR $MDVN, $MELI) $$

March 20, 2012

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

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