The Wagner Daily - September 21, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks closed mixed on Tuesday as trade rose slightly. The morning session showed promise as stocks rallied sharply. For most of the day stocks consolidated at the highs but at the 2:30 reversal period sellers entered the market and drove stocks to session lows into the close. Smaller cap stocks underperformed for the second consecutive day as the small-cap Russell 2000 and the S&P MidCap 400 dropped 1.7% and 1.3% respectively. After being up as much as 1.2% on the session, the Nasdaq closed down by almost 0.9%. The S&P 500 fell 0.2% while the Dow Jones Industrial Average closed fractionally higher. Market internals were modestly bearish yesterday but when reviewed in context of the sharp intraday reversal a more negative picture appears. Volume climbed by 0.6% on the NYSE and 1.1% on the Nasdaq with most of the uptick in trade coming at the afternoon reversal period. Declining volume outpaced advancing volume by a ratio of 1.7 to 1 on the NYSE and 2.5 to 1 on the Nasdaq. Given the recent churn at the highs and yesterday's sharp intraday reversal we would classify yesterday as a distribution day for the broad market. Yesterday the ProShares Ultrashort Basic Materials ETF (SMN) formed a reversal candle as it gapped down, sold off, abruptly reversed and rallied to close near the two day high. A volume assisted move back above yesterday's high of $21.24 could provide a long entry trigger for SMN. We are placing SMN on the watchlist. Trade details can be found in the watchlist segment of the newsletter. Over the past two days the iShares Dow Jones US Real Estate ETF (IYR) has formed back to back reversal candles as it struggles to hold support of its 20-day EMA. A move below the two day low of $55.34 could result in further selling pressure for this ETF. We are also placing IYR on the watchlist. Trade details are available to our subscribers in the watchlist section of the newsletter. We raised our stop in EEV yesterday and the stop was hit. We exited the second half of the trade and booked a solid gain. Our position in EUO remains intact and it appears ready to move higher. Yesterday's sharp reversal does not bode well for market bulls. If we see a follow through day on Wednesday, another round of heavy selling appears likely. 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.
Looking at http://bit.ly/pIKhhE -- your main product? -- seems the number of trades each quarter has declined in the last two years, as has the quarterly gain. Has something changed in you strategy or in the markets?
The Wagner Daily - September 22, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks got pelted on a burst of volume into the close yesterday. All five major indices closed down by two percent or more. The small-cap Russell 2000 and the S&P MidCap 400 led the plunge as they posted losses of 4.0% and 3.8% respectively. The S&P 500 dropped 2.9% while the Dow Jones Industrial Average and the Nasdaq shed 2.5% and 2.0% respectively. Yesterday was a very bad day for Wall Street. Market internals were decidedly bearish. Turnover spiked on both exchanges. The Nasdaq saw trade improve by 13.2%. On the Big Board turnover jumped by a healthy 32.0%. Declining volume overpowered advancing volume by a ratio of 22.3 to 1 on the NYSE and by a factor of 4.0 to 1 on the Nasdaq. The increase in volume combined with significantly higher down volume points directly to institutional distribution. Yesterday was clearly a distribution day for the market. The PowerShares DB Agriculture ETF (DBA) has come under severe pressure lately and has just undercut a major support level near $31.25. Due to the severity of the recent selling DBA does not offer a good risk/reward entry at this time. However, we will be monitoring this ETF closely for a bounce into resistance as a possible short entry trigger and anticipate a bounce soon. If DBA holds support near this level and bounces, the next time it tests the $31.25 mark could result in a major selloff since there is no significant support left below this level. Yesterday via intraday alert we cancelled the IYR setup and replaced it with a long position in SRS. This move was necessitated by the inability to borrow shares of IYR to short. SMNalso triggered and we entered the trade. By the closing bell both trades were up by more than 10%. It is likely that we will close both positions if the market gaps down at the open on Thursday. We will also be looking for an exit strategy for our EUO position. Yesterday's breakdown was so broad based that over 800 stocks closed lower by more than 4 percent. It is noteworthy that commodities are now moving in the same direction with stocks. That's often an early sign that the market is capitulating. It now appears likely that the major indices will test the swing lows set in early August. 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 23, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Thursday was a miserable day for Wall Street as bears dominated the market on heavy trade. The only bright note is that stocks did end off session lows. All five major indices closed in the red as the market saw broad based selling. The Dow Jones Industrial Average plunged by 3.5% while the Nasdaq, S&P 500 and small-cap Russell 2000 all slid 3.2%. The S&P MidCap 400 was the only major index that did not eclipse the three percent loss mark as it fell by 2.9%. For a second time in as many days internals were decisively bearish. Volume spiked by a whopping 35% on the Nasdaq and 39% on the NYSE. Declining volume overwhelmed advancing volume by a ratio of 19.6 to 1 on the Big Board and 12.0 to 1 on the Nasdaq. Given the massive gap down and heavy trade, it is obvious that institutional players were actively involved in the selling. Thursday is easily classified as a distribution day for the broad market as no sectors were spared the carnage. We exited all of our positions yesterday for sizeable gains. We closed SRS, SMN and EUO to post gains of 15%, 20% and 6.5% respectively. Below we have provided charts of SRS, SMN and EUO that show both the entry and exit prices in each of these trades. Notice that for each trade we patiently waited for legitimate price triggers to enter and we exited all of the trades into the strength of a gap up. The NYSE has been a very reliable leading indicator in this bear market. The charts below provide some insight into what we expect from the market over the next several days. Only time will tell if our observations are correct. In order for the market to stabilize and set up the next rally it is likely that we need a capitulation day of 4-5% across all major indices. Typically capitulation involves a massive spike in volume, 800-1000 stocks down four percent or more, 90% down volume, 90% of stocks down on the day and relentless selling into the close. The capitulation day should then be followed by a massive reversal day which catches market bulls off guard. Typically, only with this type of price action, can a bottom be put in the market. 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 26, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Friday brought a modest recovery to the market but on light trade. All major indices ended the session higher with higher beta issues leading the way. Both the small-cap Russell 2000 and the S&P MidCap 400 rallied 1.3% while the Nasdaq climbed by 1.1% The S&P 500 tacked on 0.6% and the Dow Jones Industrial Average Underperformed as it rose by only 0.3%. Market internals ended the session mixed. Volume was down sharply across the board. Turnover plunged by 32.3% on the Nasdaq and by 28.2% on the NYSE. However, advancing volume topped declining volume by 2.0 to 1 on the NYSE and 3.7 to 1 on the Nasdaq. Because of the light volume, Friday's price action appears to be little more than a bounce in the wake of Thursday's viscous distribution. Over the past two sessions the iShares Silver Trust ETF (SLV) has gapped down dramatically and sliced through support of all of its moving averages and its one year uptrend line. SLV has now set a lower high and a lower low which officially makes it a trend reversal candidate. A rally back into the 200-day moving average could present shorting opportunity in this ETF. The iShares MSCI Thailand Investable Market Index ETF (THD) has recently broken its long term uptrend line as it lost support of all key moving averages. THD is now testing support of its February 10th swing low. A bounce off of this level back into resistance near the 20-day EMA could provide a shorting opportunity in THD. We are monitoring THD closely for a potential short entry. The market consolidated near the two day low on Friday as all of the major indices moved sideways along their respective 20-day and 50-day moving averages. This type of price action following a big move often results in a continuation of the prevailing trend. 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 27, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks posted solid gains on Monday but on mixed trade. In a whipsaw session stocks began the day higher but sold off until 10:30 at which time the market caught a bid, steadily climbed until noon, reversed again and sold off until 2:00pm and then rallied sharply into the close. All five major indices closed near session highs. There was a noticeable divergence between the Nasdaq and the other major indices however. The Dow Jones Industrial Average led the charge as it posted a strong 2.5% advance while the S&P 500 tacked on 2.3%. The small-cap Russell 2000 improved by 2.0% and the S&P MidCap 400 tacked on 1.9%. The Nasdaq was the day's laggard as it added a more modest 1.3%. Market internals were mixed for a second consecutive session. Volume plummeted by 26.1% on the NYSE but closed fractionally higher on the Nasdaq. Advancing volume topped declining volume by a margin of 8.8 to 1 on the NYSE and by 2.3 to 1 on the Nasdaq. Given the poor volume, we would not classify yesterday as an accumulation day for either the NYSE or the Nasdaq. The PowerShares DB Crude Oil Double Short ETF (DTO) has shown excellent relative strength to the broad market. Over the past two months DTO easily held support of both the 50-day and 20-day moving averages prior to its breakout move last week. Further, DTO is one of only a few inverse ETFs that moved above its August swing high during last week's breakout. A pull-back to the ascending 20-day EMA could provide a buying in this ETF. Yesterday, on lighter volume, the S&P Select Industrial Sector SPDR ETF (XLI) rallied to fill the gap formed on September 22nd. XLI is now very close to major resistance at its 20-day EMA, 50-day MA and September 16th swing high. A move back into this zone of resistance could provide a short entry trigger for this ETF. Via an intraday alert we entered a small position in the ProShares UltraShort Real Estate ETF (SRS) as it bounced after holding support at the 200-period MA on the 60-minute chart. We took small size and placed a tight stop since we considered this an aggressive entry. Trade details are available to our clients in the watchlist segment of the newsletter. The market reversed sharply yesterday but in the absence of significant volume it is difficult to view the move as more than just a bounce in the wake of a week of viscous selling. We remain focused on identifying short setups into any bounces the market provides. In order for the market to stabilize and set up the next rally it is likely that we need a capitulation day of 4-5% across all major indices. Typically capitulation involves a massive spike in volume, 800-1000 stocks down four percent or more, 90% down volume, 90% of stocks down on the day and relentless selling into the close. The capitulation day should then be followed by a massive reversal day which catches market bulls off guard. Typically, only with this type of price action, can a bottom be put in the market. 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.
Because the stock markets fell sharply and broke below technical support levels last week, you probably are losing money in the stock market right now. That is why you need to learn how to profit from short selling, which enables you to make money when the prices of stocks go lower. With the DragonScan stock screener, finding the weakest stocks for short selling is quick and easy...but do you know how to sell short and then use the DragonScan stock screener to find the right stocks? If not, be sure to attend our next Live Online Webinar, where we will discuss how to short sell and profit in a weak market. We will also demonstrate exactly how to scan for these stocks with DragonCharts. This interactive Live Online Webinar is free to attend and will be held on Tuesday, September 27 at 9:00a EST. At the end of the webinar, you will also have the chance to ask any questions, and receive instant answers from the DragonCharts team. The link below will take you to the live webinar: http://dragoncharts.activehosted.co...x/join.aspx--Q-id--E-19853927--A-password--E- No password needed - Leave blank in the field In addition to discussing short selling, we will also be showing exactly how to find the best stocks with the DragonScan stock screener, so be sure to attend this webinar if you want to learn more about DragonCharts and our unique software. The webinar will be recorded and the replay link posted in this thread.
MTG logo The Wagner Daily - September 28, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Equities moved higher for a second consecutive day but closed well off session highs. In a follow up to Monday's action, stock prices whipsawed again but Tuesday's session ended with stocks in retreat. All five major indices closed higher as smaller cap issues led the advance. The S&P MidCap 400 tacked on 2.2% while the small-cap Russell 2000 gained 1.9%. The Dow Jones Industrial Average, Nasdaq and S&P 500 posted gains of 1.3%, 1.2% and 1.1% respectively. Market internals flashed a bullish signal but we are wary to classify yesterday's action as an accumulation day for the broad market due to the significant intraday reversal. Volume was up across the board with the Nasdaq seeing an increase in turnover of 5.7%. On the NYSE, trade jumped by an impressive 31.3%. Advancing volume topped declining volume by a ratio of 3.8 to 1 on the NYSE and 3.5 to 1 on the Nasdaq. We were stopped out of our position in SRS yesterday resulting in our first losing trade of the month. As discussed in yesterday's newsletter we considered this trade as slightly higher risk and we therefore took small position size and maintained a tight stop. However, given the reversal candle formed by SRS yesterday, this ETF now presents a possible long entry above yesterday's high of $16.45. We are monitoring this setup carefully for a possible re-entry. Yesterday the ProShares Short MSCI EAFE ETF (EFZ) gapped down and undercut its 20-day EMA before reversing to close near the day's high. This type of price action serves to sweep poorly placed stops and shake out weak hands. A move back above yesterday's high of $54.48 could provide a short entry trigger for this ETF. We are placing EFZ on the watchlist. Trade details are available to our subscribers in the watchlist section of the newsletter. For the second time in as many days market leaders struggled suggesting that the most recent two day rally is being led by market laggards. This type of price action must be taken into consideration when evaluating the bearishness or bullishness of a market. In a healthy market stocks such as AAPL, GMCR and AMZN would have rallied to new highs on a day like yesterday. 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 29, 2011 Concise technical analysis and picks of the leading global ETFs Commentary: Stocks closed lower on Wednesday and for a second consecutive day slid sharply into the close. In a reversal of Tuesday's price action, smaller cap issues showed relative weakness on Wednesday as the small-cap Russell 2000 and the S&P MidCap 400 sank 4.1% and 3.8% respectively. The tech rich Nasdaq dropped 2.2% as the S&P 500 lost just over 2.0%. The Dow Jones Industrial Average showed the most resiliency on the day as it contained losses to just over 1.6%. Internals were mixed on Wednesday. Volume fell across both exchanges. Turnover slid by 8.1% on the Nasdaq and 10.7% on the Big Board. However, declining volume easily outpaced advancing volume by 7.4 to 1 on the Nasdaq and 26.3 to 1 on the NYSE. Despite the lighter volume yesterday's late day price action gave all the appearances of institutional distribution. At a minimum it was a follow through day for market bears. Yesterday, via intraday alert we re-entered a position in the ProShares UltraShort Real Estate ETF (SRS) as it moved above Tuesday's reversal candle. Although we had just taken a loss in SRS on Tuesday we did not hesitate to re-enter the trade when a quality setup presented itself. Each trade stands of its own merits. We also sent an alert that we were shorting the S&P Consumer Staples Select Sector SPDR ETF (XLP) as it broke the two day low. EFZ also triggered yesterday and we entered the position. Trade details for these positions are available to our subscribers in the open positions section of the newsletter. Last week we discussed two key support levels on the S&P 500. There are two distinct swing lows in place that the S&P must hold or the market is likely to see another significant selloff. The first key level is 1,120 which was established last week. If we lose support at 1,120 then the next stop is likely the August 9th swing low of 1,100. If we breach the August low we could test the lows set in July-August of 2010. At a minimum, now that the market is within striking distance of the August 9th swing low, it appears likely that we will move to at least undercut this key mark. 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.