One potential ETF swing trade we are monitoring for potential "pullback" trade entry is WisdomTree India Earnings Fund ($EPI). $EPI broke out from a tight, four-week consolidation (or handle) on a nice increase in volume, which is a bullish sign. The tight consolidation held above the 20-day EMA before breaking out on January 2. Now, we are merely looking for a three to five day pullback that finds support somewhere in the $19.50 area. However, $EPI does not have to pull back at all and could simply just go sideways for a day or two before resuming its uptrend:



We established one new long position in the SPDR S&P Homebuilders ETF ($XHB) last Friday (click here to see our original analysis of this trade setup in our January 2 blog post. Our ETF trading breakout buy setup in the iShares MSCI Singapore Index ($EWS) did not trigger last Friday, but we'll continue to monitor the action for a potential breakout OR pullback entry off support of the 20-day EMA (if it gets there).

From our weekend stock scanning, it was clear that the market has put in an impressive thrust off the lows. If current breakouts remain intact, the broad market should be in great shape. The large move up has not left us with many low-risk setups, but we were able to locate one low risk individual stock trade setup in $ARNA. $ARNA has the best relative strength ranking in its industry group at 99. We also liked $HLSS as a breakout entry above the three-day high; however, earnings are scheduled for Jan. 14, so we are passing on this technical trading setup.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.