Seeking Alpha

Morpheus Tradin...'s  Instablog

Morpheus Trading Group
Send Message
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
My company:
Morpheus Trading Group
My blog:
Morpheus Trading Group - swing trading blog
My book:
Advanced Technical Analysis of ETFs
  • Time To Be Nimble (EEV)- October 10, 2011  0 comments
    Oct 10, 2011 8:56 AM | about stocks: SRS, EEV
    MTG logo

    The Wagner Daily - October 10, 2011
    Concise technical analysis and picks of the leading global ETFs



    Commentary:

    Stocks ended Friday's whipsaw session lower on mixed trade. In a reversal of Thursday's action, high beta stocks led the market lower as the S&P MidCap 400 and the small-cap Russell 2000 shed 1.6% and 2.6.% respectively. The tech rich Nasdaq fell 1.1% while the S&P 500 slid 0.8%. The Dow Jones Industrial Average showed relative strength on the day as it only fell 0.2%.

    Market internals were mixed for a third consecutive day. Volume slid on the Nasdaq by 6.9% but climbed on the NYSE by 3.3%. However, declining volume topped advancing volume by 4.0 to 1 on the NYSE and 3.0 to 1 on the Nasdaq. Friday's middling internals point to a lack of institutional participation on the session. Still, the NYSE did close near session lows on higher volume suggesting that bears are still in control of the Big Board.

    Via an intraday alert we entered a long position in the UltraShort Real Estate ProShares ETF (NYSEARCA:SRS) after it undercut and reclaimed support of its 20-day EMA. Trade details are available to our subscribers in the open position segment of the newsletter.


    In Friday's newsletter we discussed the ProShares UltraShort MSCI Emerging Markets ETF (NYSEARCA:EEV) and stated, "The formation of a reversal candle would provide an ideal setup for a possible long entry in this inverse ETF". On Friday EEV formed a reversal candle as it gapped down, undercut its 20-day EMA and reversed on a spike in volume to close near session highs. We are placing EEV on the watchlist. Trade details are available to our subscribing members in the watchlist section of the newsletter.


    Despite our bearish leanings, last Tuesday's market reversal has us on guard for a potential bullish follow through day in the market. We are prepared to take profits quickly in any short positions should the market put in an accumulation day anytime this week.


    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.
Back To Morpheus Trading Group's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.