logo
  Join        Login             Stock Quote

Potential Breakout Entry In Energy ETF (ERX)

 April 05, 2011 10:02 AM


Stocks ended Monday's lackluster session mixed, as volume declined. The Nasdaq was the only major index to end the day lower, as it closed fractionally below the flatline. The S&P 500 ended the day fractionally above the flatline. The S&P MidCap 400 and the Dow Jones Industrial Average realized modest gains of 0.1% and 0.2% respectively. The small-cap Russell 2000 was the only major index to post an appreciable gain. The small cap index ended the day 0.5% higher.

Turnover was down on Monday. Volume on the Nasdaq fell by 19%, while on the NYSE it was down 11.1% yesterday. The advancing to declining volume ratio, for all intents and purposes, ended the day at par on both indices.

On Monday we sent an intraday alert providing the trade details for a possible long entry in the Nasdaq 100 UltraShort ETF (QID). We stated, "The Nasdaq appears to be forming a "lower high" on its daily chart, indicating a possibility of a move back down to the recent lows. A QID buy entry above Friday's high gives us a positive reward/risk ratio on the setup. Shortly after sending this alert, QID hit our trigger. Trade details are available for our subscribers in the open positions segment of the newsletter.



[Related -The Boeing Company (BA) Q2 Earnings Preview: Durable Earnings Beater]

The Market Vectors Coal ETF (KOL) has recent rallied to a new 52 week high. Given the relative strength of this ETF, a pullback near $50.00 may present a buying opportunity in this ETF. We will be monitoring KOL closely for a potential entry.



[Related -Angie's List Inc. (ANGI) Q2 Earnings Preview: Trending Towards a Smaller Loss than Expected]

Direxion Energy Bull 3X Shares ETF (ERX) has been consolidating for three days in a tight pennant like formation. A move above the two day high of $92.44 could present a buy entry trigger for this ETF. We will be following ERX for a possible buy entry.



Sector rotation continued yesterday. Semiconductors and technology were weak, as healthcare, emerging markets and energy remained strong. It appears that money may be starting to rotate out of financial stocks. The sector appears weak as the XLF has been struggling to reclaim its 50-day MA.


NOTE:Regular subscribers to The Wagner Daily receive daily updates on the open positions above, as well as new ETF trade setups, including trigger, stop, and target prices. Intraday Trade Alerts are also sent via e-mail and/or mobile phone text message on as-needed basis.


Deron Wagner is the head trader of Morpheus Capital Hedge Fund and founder of Morpheus Trading Group (morpheustrading.com), which he launched in 2001. Wagner appears on his best-selling video, Sector Trading Strategies (Marketplace Books, June 2002), and is 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. He is also a frequent guest speaker at various trading and financial conferences around the world. Wagner is currently working on this third book, scheduled for publication in early 2008.For a free trial to the full version of The Wagner Daily above, which includes detailed ETF trade setups and daily position updates, or to learn about our other newsletters, visit morpheustrading.com or send an e-mail to deron@morpheustrading.com
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

article imageGoogle Inc. (GOOGL) Q2 Earnings Preview: A Few Pennies Either Way Make a Big Difference.

Google Inc. (NASDAQ:GOOGL) will hold its quarterly conference call to discuss second quarter 2014 financial read on...

article image19 Companies That Could Beat Earnings and Pop on Price Next Week

Using iStock’s proprietary iEstimates model, we have identified 19 publicly traded companies that could read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

How To Profit From The Death Of The Big Banks
More Articles on: ETFs



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.