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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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Morpheus Trading Group - swing trading blog
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Advanced Technical Analysis of ETFs
  • Potential breakout entry in (KBE) - February 17, 2011 0 comments
    Feb 17, 2011 9:16 AM | about stocks: KBE, PALL
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    The Wagner Daily - February 17, 2011
    Concise technical analysis and picks of the leading global ETFs



    Commentary:

    All five major indices moved higher on Wednesday, as trade increased. The small-cap Russell 2000 led the charge by posting an impressive 1.0% gain on the session. The Nasdaq and the S&P MidCap 400 both advanced by 0.7%, while the S&P 500 posted a 0.6% improvement day over day. The Dow Jones Industrial Average lagged the other averages as it ended the day only 0.5% higher.

    Wednesday brought with it a vast improvement to market internals. Turnover improved across the board yesterday. Volume was higher on the Nasdaq by 12.3% and on the NYSE by just under 1%. The ratio of advancing to declining volume was 2.7 to 1 on the Big Board, and 2.5 to 1 on the Nasdaq.

    The SPDR Series KBW Bank ETF (NYSEARCA:KBE) has been consolidating for the past three days on declining volume. Further, this price action follows a big breakout on February 11th. A move above the February 15th high of $27.77 should present a buy trigger for this ETF. We are placing KBE on the watchlist. Our subscribers can find position details in the watchlist segment of the newsletter.



    Our position in the ETFS Physical Palladium Shares ETF (NYSEARCA:PALL) continues to consolidate near its all time high. We may look to add to the position above yesterday's high (we will send an intraday alert if any action is taken).



    The broad market continues to demonstrate bullish resiliency. However, the majority of ETFs breaking to new highs have not met our strict technical criteria or risk/reward parameters. On a separate note, we are keeping a close eye on Emerging Market, Gold and Gold Related ETFs for potential short entries. All of these ETF classes are approaching resistance (support for inversely correlated ETFs) and may soon provide short opportunities.


    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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