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Morpheus Trading Group
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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
My company:
Morpheus Trading Group
My blog:
Morpheus Trading Group - swing trading blog
My book:
Advanced Technical Analysis of ETFs
  • Follow-Through On Our New "Short ETF" Swing Trades 0 comments
    Jun 25, 2012 10:26 AM | about stocks: MZZ, EEV, FXP

    Last Friday, the ProShares UltraShort MSCI Emerging Markets ETF ($EEV) consolidated near the high of the previous day's powerful downward move. EEV may now provide a buying opportunity if it continues to consolidate near the two-day high and forms a pivot, such as a bullish pennant. We will be monitoring this inverse ETF closely for a potential swing trade buy entry:

    (click to enlarge)EEV

    At the opening bell of last Friday's session, we sold our position in iShares Nasdaq Biotech ($IBB) for a modest gain. Following its big run up on Thursday, PowerShares U.S. Dollar Bull Index ($UUP) spent the session consolidating above its 20-day EMA and appears likely to continue its move higher this week. We remain positioned long, and appreciate that the ETF has a low correlation to the direction of the main stock market indexes.

    Both our ETF watchlist candidates from the previous day's Wagner Daily newsletter, UltraShort China 25 Index ($FXP) & UltraShort MidCap ProShares ($MZZ), triggered for entry last Friday, so we are now long both inversely correlated ETFs. As of this morning's weakness, both positions are now showing solid unrealized gains since entry. We will continue to keep subscribers informed of any changes to our stop or target prices on these positions.

    Overall, last Friday's price and volume action, although somewhat suspect, still added confusion to a market that is trying to establish a direction. We advise treading carefully through the current market landmine.

    The commentary above is an excerpt from The Wagner Daily stock newsletter. Subscribers to the full version receive our exact entry and exit prices for swing trades of the top stock and ETF picks, access to our market timing model, and more. To get started today, sign up for your 30-day risk-free trial to our Wagner Daily stock newsletter. To learn more about our proven trading strategy, please visit and bookmark our trading blog.

    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.

    © 2002-2012 Morpheus Trading, LLC
    Reproduction without permission is strictly prohibited.

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