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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
  • Bulls On The Brink? (SPY)- October 3, 2011 0 comments
    Oct 3, 2011 9:51 AM | about stocks: ZSL, XRT, SPY
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    The Wagner Daily - October 3, 2011
    Concise technical analysis and picks of the leading global ETFs



    Commentary:

    Friday was a bad day for Wall Street as stocks fell sharply and closed near session lows. All five major indices plummeted more than two percent with higher beta issues leading the decline. Both the small-cap Russell 2000 and the S&P MidCap 400 plunged 2.8% while the Nasdaq dropped just over 2.6%. The S&P 500 fell 2.5% and the Dow Jones Industrial Average shed 2.2%.

    Although Friday's price action was decidedly bearish, the session ended with market internals mixed. Volume increased on the Big Board by 5.7% while it fell on the Nasdaq by 11.4%. However declining volume overwhelmed advancing volume on the NYSE and the Nasdaq by 15.8 to 1 and 8.8 to 1 respectively. Friday's higher volume selloff on the NYSE points to institutional distribution.

    In Friday's newsletter we stated that, "the ProShares UltraShort Silver ETF (NYSEARCA:ZSL) has been consolidating just above its 20-day EMA and now appears poised for another move higher. A rally above the two day high of $17.32 could provide a long entry trigger for ZSL". ZSL acted well on Friday as it closed near session highs and is now within striking distance of $17.32. We are placing ZSL on the watchlist. Trade details are available to our subscribers in the watchlist segment of the newsletter.


    The SPDR S&P Retail ETF (NYSEARCA:XRT) gapped down and closed near session lows yesterday. A move below the two day low of $46.13 could provide a shorting opportunity in this ETF.


    Our positions in XLP, SRS and EFZ all acted well on Friday and we are now well in the money on all three trades. Should the market gap down on Monday we may look to take profits on at least a portion of each trade. Now that we are back within a few points of the critical support level of 1,120 on the S&P it is likely that this mark will be tested on Monday. If we are unable to maintain support at 1,120 then we'll likely see a test of 1,100.


    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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