Tesla Motors Inc(NASDAQ:TSLA) ripped 16% higher on big volume. We remain long from our December 31 entry of $148.76, giving us an unrealized gain of +66% so far.
First Trust ISE Revere Natural Gas (ETF)(NYSEARCA:FCG) continues to form a bullish pattern on the daily chart, finding support off the 10-day MA and closing off the lows of the session on Tuesday. We look for the action to hold above the rising 20-day EMA as it consolidates before breaking out to new 52-week highs.
The target area for $FCG is around $23, which is the prior high of 2011 on the monthly chart below. Note the tight price action the past few months as $FCG held above the rising 10-month moving average:
iShares S&P Global Infrastructure Index(NYSEARCA:IGF) recently broke out from a three-year long consolidation, after tightening up from November to January, just above the rising 10-month MA.
There are three more days of trading left before the end of the month, so assuming that the action holds up, then $IGF will have a confirmed breakout on the daily, weekly, and monthly charts:
The daily chart of $IGF is extended in the short term, so we must wait for a low risk entry point to develop. A three to five bar pullback to the 10 or 20-day EMA is ideal. At the very least, we’d like the price action to hold above the rising 20-day ME minus a shakeout bar or two:
Our short position in emerging markets triggered on Tuesday with (inverse ETF) Direxion Daily Emr Mkts Bear 3x Shs(ETF)(NYSEARCA:EDZ) clearing $46. The price action followed through nicely on a pick up in volume. We’d like to add to the position on short-term weakness. Regular subscribers of The Wagner Daily should note our trade details for this setup in the “Watchlist” section of today’s report.
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