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Deron Wagner is the founder and portfolio manager of Morpheus Trading Group. His daily focus is managing and trading the Morpheus Capital Hedge Fund, which he founded in April of 2004. He also teaches his swing trading strategy with The Wagner Daily newsletter, which provides exact entry, exit,... More
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Advanced Technical Analysis of ETFs
  • Breakout buy entry in (PALL) - February 4, 2011 0 comments
    Feb 4, 2011 7:37 AM | about stocks: XRT, KBE, PALL
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    The Wagner Daily - February 4, 2011
    Concise technical analysis and picks of the leading global ETFs



    Commentary:

    Stocks finished higher on Thursday after spend most of the session in the red. All five major indices finished the session higher. The small-cap Russell 2000 and the S&P MidCap 400 ended the day up by 0.3%. The Nasdaq, the blue chip Dow and the S&P 500 all posted 0.2% advances.

    For a second consecutive day market internals were mixed. Volume on the Nasdaq receded 4.5%, while turnover on the NYSE was higher by 6.4% yesterday. Advancing volume outpaced declining volume on both indices by a factor of 1.4 to 1. Thursday's market internals were indicative of a market that is consolidating.

    After a big volume down day on Wednesday, the SPDR S&P Retail ETF (XRT) appeared to be on the brink of a major breakdown. However XRT reversed dramatically yesterday, as it gapped up and rallied to close near its intraday high. A volume fueled rally back above yesterday's high of $47.57 provides a possible buy entry for this ETF.



    The SPDR Series KBW Bank ETF (KBE) has spent the past three days consolidating on declining volume, which is often considered a bullish signal. Further, this consolidation has occurred after KBE broke out from a base at the 50-day MA. A rally above the February 1st high of $27.03 could provide a buying opportunity in KBE.



    The ETFS Physical Palladium Shares ETF (PALL) has been consolidating in a very tight trading range for the past three weeks, as volume has contracted. A move above the three day high of $81.98 presents a potential long trigger for this ETF. Because of the bullish price and volume activity in PALL, we are placing it on the watchlist. Trade details can be found in the watchlist segment of the newsletter.



    For the past three days the broad market has been consolidating in a tight trading range near the 52 week highs. From our nightly research we found long entries to be abundant. The market appears primed for another advance.


    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.

    Charts created by TradeStation (tradestation.com).

    © 2002-2010 Morpheus Trading, LLC
    Reproduction without permission is strictly prohibited.
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