The Wagner Daily - September 9, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks lost ground on Thursday amidst higher volume. All five major indices ended in the red. The small-cap Russell 2000 withstood the most damage as it fell 2.0%. The S&P MidCap 400 lost 1.3% while both the Dow Jones Industrial Average and the S&P 500 shed just over 1.0%. The Nasdaq showed the most resiliency as it contained losses at 0.8%. Market internals were modestly bearish on Thursday. Volume rose by 10.2% on the Nasdaq but was only fractionally higher on the NYSE. However, declining volume was proportionally higher on the NYSE versus the Nasdaq. By the closing bell the spread ratio stood at 5.7 to 1 on the NYSE and 1.5 to 1 on the Nasdaq in favor of declining volume. Yesterday's internals suggest a distribution day on the Nasdaq. The picture is a little less clear on the NYSE because of the lighter volume on this index. Over the past three sessions the iShares Dow Jones Transportation Average Index ETF has shown relative weakness to the broad market. As the S&P 500 has rallied to overcut its 20-day EMA, IYT has remained below this level. Yesterday, IYT formed a reversal candle as it turned lower just prior to touching its 20-day EMA. A move below the two day low of $80.23 could present a short entry trigger for this ETF. We are following IYT carefully for a potential short entry. Yesterday, the PowerShares DB Crude Oil Double Short ETF (DTO) tested support of the September 1st swing low but reversed at this level and rallied to close near session highs. A move above yesterday's high of $60.31 could present a long entry trigger for this ETF. Alternatively, a move above the two day high of $61.86 also provides a possible long entry point for DTO. When a setup like this presents itself we will often take a half position at the first trigger and add to that position above the second trigger. Despite the bearish action on Thursday we are hesitant to make a call for a wholesale selloff today. Although volume was higher on the Nasdaq it remained about the same on the NYSE as compared to Wednesday's level. Further, declining volume did not overwhelm advancing volume on the Nasdaq and the total volume on both indices fell well below the 50-day volume moving average. Normally we like to see reversal days accompanied by volume that is at or above the 50-day volume moving average. The lighter the volume, the weaker the signal and the more cautious we are with respect to taking on new trades. The commentary above is an abbreviated version of our daily ETF trading newsletter, The Wagner Daily. Subscribers to the full version receive specific ETF trade setups with detailed trigger, stop, and target prices, as well as daily updates on all open positions. Intraday Trade Alerts are also sent via e-mail and/or text message, on as-needed basis. For your free 1-month trial to the full version of The Wagner Daily, or to learn about our other services, please visit morpheustrading.com. Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2001. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: deron@morpheustrading.com.
On the evening of September 8, Morpheus Trading Group conducted a live online webinar, where we showed attendees our top potential stock trade "setups," and also gave our analysis of the broad market. All of the stocks we entered last week (which have been short sales) became winning trades in our Wagner Daily and MTG Stalk Sheet newsletters. Although rapidly changing market conditions may have made some of these plays invalid now, the educational value of the webinar is still high for individuals who want to learn our consistently profitable trading methodology. Here is the link: http://www.youtube.com/watch?v=lt0SPr01koM&feature=youtu.be
The Wagner Daily - September 13, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks sold off at the open and chopped around for most of the day. However, a late day flurry of buying propelled equities to session highs. By the closing bell all five major indices were solidly in the black. The Nasdaq continued to show relative strength to the broad market as it ended the session up by 1.1%. The small-cap Russell 2000 climbed 0.8% while the S&P 500 added 0.7%. Both the Dow Jones Industrial Average and the S&P MidCap 400 tacked on 0.6%. Market internals ended the day mixed. Volume fell on the Nasdaq by 3.4% and on the NYSE by 8.5%. Advancing volume modestly outpaced declining volume by a factor of 1.3 to 1 on the NYSE and 2.7 to 1 on the Nasdaq. Despite the positive price action, the weak volume suggests that institutions were not involved in Monday's rally. The market has spent a lot of time churning lately and this is generally not a good sign for bulls. Given yesterday's reversal, an overview of the major exchanges is warranted. Notice how the Nasdaq ($COMPX) and in particular the Nasdaq 100 ($NDX.X) have been showing relative strength to the broad market recently. As the S&P 500, NYSE and DJIA have been testing their respective swing lows, the Nasdaq and Nasdaq 100 have been setting higher lows. This suggests that money is rotating into the large cap Nasdaq stocks and provides an explanation for our observation in Monday's newsletter when we said, "...not all leaders have broken down as AAPL, PCLN and AMZN have all held support over the past six weeks. However, if these remaining hold-outs begin to crack then we would anticipate another significant round of selling in the broad market". It is important to note that the S&P, DJIA and NYSE all tested key support for the 4th time and held these levels yesterday. Consequently, we would not be surprised to see a rally over the next few days. However, we will be watching the volume carefully since it has tended to be weak on positive days in the market lately. If the market bounces in the absence of accumulation days, it is likely that we will be facing another leg down as a fifth test of major support is not likely to hold. The light volume brings into question the strength of yesterday's rally but the reversal candles formed on the major indices cannot be ignored. In the absence of institutional participation late day buying in the wake of a morning selloff can often be attributed to short covering. Still, the market is giving us mixed messages and we would not be surprised to see the market put together a significant rally. Consequently, we prefer to sit in cash, monitor the market carefully and wait for new setups to form. The commentary above is an abbreviated version of our daily ETF trading newsletter, The Wagner Daily. Subscribers to the full version receive specific ETF trade setups with detailed trigger, stop, and target prices, as well as daily updates on all open positions. Intraday Trade Alerts are also sent via e-mail and/or text message, on as-needed basis. For your free 1-month trial to the full version of The Wagner Daily, or to learn about our other services, please visit morpheustrading.com. Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2001. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: deron@morpheustrading.com. DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily (hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have positions in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results. © 2002-2010 Morpheus Trading, LLC Reproduction without permission is strictly prohibited.
The Wagner Daily - September 14, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: For the second consecutive day stocks finished near session highs but once again on lighter volume. Despite the positive price action there was disparity among the major indices. The small-cap Russell 2000 and the Nasdaq led the advance as they posted gains of 1.7% and 1.5% respectively. Both the S&P 500 and the S&P MidCap 400 tacked on 0.9% but the Dow Jones Industrial Average severely lagged the other indices as it could only muster a slim 0.4% improvement for the session. It is noteworthy that the Dow Jones Transportation Average surged an impressive 3.4% despite the Dow's weak performance. For the second time in as many days Internals were mixed. Turnover fell by a modest 2.5% on the Nasdaq and 2.5% on the Big Board. However advancing volume topped declining volume across the board. By the closing bell the ratio of advancing to declining volume rested at 3.2 to 1 on the NYSE and 5.4 to 1 on the Nasdaq. The last two days of higher price action has given all the signs of a bear market rally. Light volume rallies are always suspect when the broad market is down-trending. Nonetheless, we would still classify Tuesday as a follow through day and would not be surprised if the market were to rally for several more days. Since gapping down on August 4th, the iShares MSCI Japan Index ETF has been one of the weakest ETFs in the world market. EWJ is now just below resistance of its 20-day EMA. A move into this key moving average could present a short entry trigger for this ETF. We are monitoring EWJ for a possible short entry. Since May of this year the United States Oil Fund LP ETF (USO) has been down-trending along its 20 and 50-day moving averages. USO is no approaching resistance of its downtrend line, a former support level and the 50-day MA. An overcut of these key resistance levels could provide a quality shorting opportunity in this ETF. We are monitoring USO closely as a possible short candidate. The market continues to struggle in its latest move higher. Although we can justifiably classify yesterday as a follow through day, the lack of turnover puts into question the sustainability of the current advance. For the moment, we are content to sit in cash and wait for the next wave of quality setups to develop. The commentary above is an abbreviated version of our daily ETF trading newsletter, The Wagner Daily. Subscribers to the full version receive specific ETF trade setups with detailed trigger, stop, and target prices, as well as daily updates on all open positions. Intraday Trade Alerts are also sent via e-mail and/or text message, on as-needed basis. For your free 1-month trial to the full version of The Wagner Daily, or to learn about our other services, please visit morpheustrading.com. Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2001. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: deron@morpheustrading.com. DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily (hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have positions in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results. © 2002-2010 Morpheus Trading, LLC Reproduction without permission is strictly prohibited.
The Wagner Daily - September 15, 2011 Concise technical analysis and picks of the leading global ETFs Please check out the Wagner Daily Subscriber Guide to learn how to get the most from your subscription. Commentary: Stocks tacked on strong gains for a third consecutive day, but finished off session highs as a wave of selling hit the market into the close. All five major indices closed in the black with higher beta issues leading the advance. The small-cap Russell 2000 posted a 1.8% gain, while the Nasdaq and the S&P MidCap 400 added 1.6% and 1.5% respectively. The S&P 500 moved higher by 1.4% and the Dow Jones tacked on 1.3%. Wednesday's action was also driven by positive market internals. For the first time during this three-day rally, volume was higher on both exchanges. Volume on the Nasdaq surged by 20.1% while trade on the NYSE finished only fractionally higher. However, advancing volume topped declining volume by a solid margin of 5.7 to 1 on the NYSE and 4.5 to 1 on the Nasdaq. The strong volume on the Nasdaq points directly to institutional accumulation. Yet, the verdict is not as clear for the NYSE as volume increased by less than 1%. At a minimum, it is safe to consider yesterday an accumulation day for the Nasdaq. Yesterday, on a massive spike in volume, the Market Vectors Indonesia ETF (IDX) gapped below critical support of its 200-day MA and closed near session lows. IDX now offers a shorting opportunity into resistance of the 200-day MA. We are monitoring this ETF closely for a potential short entry trigger. IDX Since forming a reversal candle on September 12th, the iShares MSCI Mexico Investable Market ETF (EWW) has only been able to rally a mere 1.4% while the broad market has rallied over double that amount. Further, EWW remains well below its 20-day EMA. A move back into resistance of the 20-day EMA could offer a shorting opportunity in this ETF. EWW Despite three days of rallying, the outstanding short interest in the market continues to remain high. High levels of bearishness are not generally conducive for big selloffs in the market. As such, we may see further upside action before the market potentially makes another leg lower. For the moment, a short squeeze appears to be looming. Still, the intermediate-term downtrends remain intact. The commentary above is an abbreviated version of our daily ETF trading newsletter, The Wagner Daily. Subscribers to the full version receive specific ETF trade setups with detailed trigger, stop, and target prices, as well as daily updates on all open positions. Intraday Trade Alerts are also sent via e-mail and/or text message, on as-needed basis. For your free 1-month trial to the full version of The Wagner Daily, or to learn about our other services, please visit morpheustrading.com. Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2002. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: deron@morpheustrading.com. DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily (hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have positions in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results. © 2002-2011 Morpheus Trading, LLC Reproduction without permission is strictly prohibited.
The Wagner Daily - September 16, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks closed higher for a fourth straight day but on lower trade. All five major indices closed near session highs. However, in a reversal over Wednesday's action, large cap stocks took the leadership role as both the Dow Jones Industrial Average and the S&P 500 added 1.7%. The S&P MidCap 400 put in a solid performance as it tacked on 1.6%. The small-cap Russell 2000 improved by 1.4% while the Nasdaq lagged for the first time in four days but still closed higher by 1.3%. Market internals were mixed on Thursday. Volume fell considerably on both exchanges. By the closing bell trade on the Nasdaq had tumbled by 15.0% and on the NYSE by 12.0%. Still, advancing volume held the upper hand as it outpaced declining volume by a ratio of 7.8 to 1 on the NYSE and 3.2 to 1 on the Nasdaq. Despite the strength of Thursday's price action, the light volume suggests that institutional traders were not actively participating in the move. Consequently we would not classify yesterday as an accumulation day on Wall Street. Via an intraday alert we entered a long position in EUO after the five minute mark yesterday. We liked the entry in this ETF because it gapped down into support near $18.00. Further, given the strength of the recent breakout buyers are likely to be in abundance near major support levels. Trade details are available for our subscribers in the watchlist section of the newsletter. Over the past week EWM has been exhibiting relative weakness as it lost support of its swing low from August 26th. Over the past two days EWM has formed back to back reversal candles and now appears to have formed a bottom. A rally back into resistance of the August 26th low and the down trending 20-day EMA could provide a shorting opportunity in this ETF. Based on price action alone yesterday's rally was impressive. However the poor volume definitely places in question the strength of the rally. As long as institutions continue to sit on the sidelines it is unlikely that any abrupt moves higher are sustainable. The commentary above is an abbreviated version of our daily ETF trading newsletter, The Wagner Daily. Subscribers to the full version receive specific ETF trade setups with detailed trigger, stop, and target prices, as well as daily updates on all open positions. Intraday Trade Alerts are also sent via e-mail and/or text message, on as-needed basis. For your free 1-month trial to the full version of The Wagner Daily, or to learn about our other services, please visit morpheustrading.com. Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2001. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: deron@morpheustrading.com. DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily (hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have positions in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results. © 2002-2010 Morpheus Trading, LLC Reproduction without permission is strictly prohibited.
Amazon Best Sellers Rank: #175,618 in Books... But if the book has any content of value, it's better it <i>not</i> sell many copies.
The Wagner Daily - September 19, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks closed mixed on quadruple witching Friday as volume was brisk. Four of the five major indices finished higher with the Nasdaq, S&P 500 and the Dow Jones Industrial Average all posting modest 0.6% gains. The S&P MidCap 400 rose a slim 0.2% while the small-cap Russell 2000 was the day's laggard as it registered a 0.1% loss for the session. Market internals ended the session mixed. As might be expected on an end of quarter options expiration day volume spiked across the board. Turnover surged on the Nasdaq by 36.0% and on the NYSE by almost 60.0%. However, advancing volume lost out to declining volume on the Nasdaq by a ratio of 1.2 to 1 while it bested declining volume on the NYSE by the same margin. After five days up in the market we saw considerable churning as stocks were unable to move higher despite the big volume. This is generally not a good sign for bulls as churning is often equated with distribution. Via an intraday alert we entered a long position in the ProShares UltraShort MSCI Emerging Markets ETF (EEV) on Friday. We liked the trade because EEV had pulled back and began to stabilize at support of its 20-day EMA. Further, over the past five sessions as the broad market has rallied, EEV has been one of the few inverse ETFs to hold support of its 20-day EMA. This exhibition of relative strength factored significantly in our decision to enter the trade. Trade details are available to our subscribing members in the open positions segment of the newsletter. The Semiconductor HOLDRs ETF (SMH) formed a reversal candle on Friday and appears likely to find resistance at the current price. Notice the "churn" in SMH near the 50-day MA. As volume has spiked significantly SMH has moved only minimally higher. This type of price and volume action often appears when institutions are in distribution mode. A move below yesterday's low of $30.78 could present a shorting opportunity in this ETF. As of this writing the S&P and Nasdaq futures are down significantly and most of the over-seas markets are down significantly. If this pattern holds we expect to see a substantial gap down at the open. This type of price behavior is quite common in down-trending markets and makes trading a bit more difficult since setups can occur with the formation of a single candle and big gap downs nullify may potential short entries. Consequently, we are always on the lookout for signs of churning and the formation of reversal candles as they provide early signals that the market may be running out of steam... The commentary above is an abbreviated version of our daily ETF trading newsletter, The Wagner Daily. Subscribers to the full version receive specific ETF trade setups with detailed trigger, stop, and target prices, as well as daily updates on all open positions. Intraday Trade Alerts are also sent via e-mail and/or text message, on as-needed basis. For your free 1-month trial to the full version of The Wagner Daily, or to learn about our other services, please visit morpheustrading.com. Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2001. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: deron@morpheustrading.com. DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily (hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have positions in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results. © 2002-2010 Morpheus Trading, LLC Reproduction without permission is strictly prohibited.
The Wagner Daily - September 20, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks sold off yesterday but closed well off session lows. All five major indices closed in the red but the day's price action was not entirely bearish as the Nasdaq 100 ($NDX.X) found its way into positive territory by the close. The Nasdaq ($COMPX) continued to show relative strength to the other indices as it posted a modest 0.4% decline while both the Dow Jones Industrial Average and the S&P 500 slid 1.0%. Smaller cap stocks were the day's losers as the S&P MidCap 400 and the Russell 2000 dropped 2.1% and 1.7% respectively. For the second consecutive day market internals were mixed. Volume plummeted in the wake of quadruple witching Friday. Turnover on the Nasdaq was down almost 30.0% while on the Big Board it fell by just over 40.0%. Declining volume outpaced advancing volume by a margin of 6.7 to 1 on the NYSE and 4.0 to 1 on the Nasdaq. The significant decline in volume and the intraday reversal suggest that selling had no institutional backing. The SPDR S&P Utilities Select Sector ETF (XLU) has been showing excellent relative strength since recovering from the late July-early August selloff. Over the past three sessions this ETF has been consolidating near its 52-week high and is well above all major moving averages. A volume fueled move through resistance at $34.07 could result in a breakout to new highs. The iShares MSCI Pacific ex-Japan ETF (EPP) appears to have found a short term bottom as it formed its second reversal candle in the past four days during yesterday's session. A rally back into resistance of the declining 20-day and 50-day moving averages could present a shorting opportunity in this ETF. Within the first thirty minutes of action yesterday we decided to sell half of our position in EEV for a healthy 7.0% gain. With that type of move on the books it made sense to take some profits. We remain in the other half of the EEV trade and are still in the full position of EUO. The search for quality setups last evening was excruciating. The market really appears to be in no man's land. Strong stocks are going higher, most are languishing and weak stocks are going lower. There's weakness in oil, copper, emerging markets, Europe and the EURO. Semiconductors, Biotechnology and technology appear to have short term relative strength. At the present we have little interest in going long but short setups are not clear cut and the risk-reward ratio is not in our favor on the few setups we found. We are also cognizant of the Fed meeting and the possibility that another round of quantitative easing is on its way. As such we are cautious about taking on new positions and wouldn't be surprised if the market were to take another leg higher. For the moment we suggest patience as the market sorts out its next move. The commentary above is an abbreviated version of our daily ETF trading newsletter, The Wagner Daily. Subscribers to the full version receive specific ETF trade setups with detailed trigger, stop, and target prices, as well as daily updates on all open positions. Intraday Trade Alerts are also sent via e-mail and/or text message, on as-needed basis. For your free 1-month trial to the full version of The Wagner Daily, or to learn about our other services, please visit morpheustrading.com. Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2001. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: deron@morpheustrading.com. DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily (hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have positions in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results. © 2002-2010 Morpheus Trading, LLC Reproduction without permission is strictly prohibited.
Ha,i knew my post would be deleted.You mustn't upset the sponsors by asking reasonable questions in the 'wrong way' you know.See,when you pay good money to promote yourself here you get more power. Thanks for showing me the correct way to present facts,nice one. Might as well knock out a couple of books tonite myself,i feel confident in not being too much further down than 175,618