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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
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Morpheus Trading Group - swing trading blog
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Advanced Technical Analysis of ETFs
  • Potential short setup in Uranium ETF (URA) - March 3, 2011 0 comments
    Mar 3, 2011 10:08 AM | about stocks: KBE, URA
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    The Wagner Daily - March 3, 2011
    Concise technical analysis and picks of the leading global ETFs



    Commentary:

    Stocks ended Wednesday's session modestly higher but volume was lower. All five major indices closed in the black with the S&P MidCap 400 leading the way (up 0.5%). The Nasdaq and the small-cap Russell 2000 both tacked on 0.4% gains, while the S&P 500 ended the day up 0.2%. The Dow Jones Industrial Average was the day's laggard as it sputtered to finish just above par. The blue chip index rose by just under 0.1% for the session.

    Market internals were mixed on Wednesday. Volume dropped by 10.3% on the Nasdaq and by 10.8% on the NYSE. However, the advancing volume to declining volume ratio finished positive on both indices. The ratio ended the day at 1.6 to 1 on the NYSE and 1.4 to 1 on the Nasdaq. Wednesday's mixed internals point to a lack of institutional involvement in the market.

    Yesterday we opened a short position in the Retail HOLDRS ETF (NYSEARCA:RTH). An intraday alert was sent to our membership outlining the trade details. Both EWY and XHB remain on the watchlist as potential short setups.

    Over the past nine sessions the SPDR Series KBW Bank ETF (NYSEARCA:KBE) has been under enormous selling pressure. This ETF is now trading well below its 20-day EMA and 50-day MA. A move below yesterday's low of $25.76 may provide a shorting opportunity in KBE.



    The Global X Uranium ETF (NYSEARCA:URA) has recently lost support of a three month uptrend line. On February 22nd this ETF plummeted on a big spike in volume. Since then it has rallied back into resistance at the 20-day EMA and the 50-day MA. A move back below the 2 day low of $20.63 could provide a short entry trigger for this ETF.



    Following a big distribution day in the market, it is not surprising that Wednesday's action was somewhat muted. On the aggregate market leaders appear to be struggling, as our daily research has been uncovering very few long setups.


    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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