In our June 28 commentary, we said market conditions were not yet ideal for aggressively initiating new long positions, but decent performance in leading stocks were preventing us from entering short positions as well. As we enter this holiday-shortened week, the same overall sentiment remains.

Overall, "SOH mode" (sitting on hands) is probably the best bet right now for stocks and ETFs correlated to the main stock market indexes. However, one great benefit of ETFs is the ability to enter positions with a low correlation to the direction of the S&P, Nasdaq, and Dow. This group includes commodity, currency, fixed-income, and (to a lesser extent) international ETFs.

Several weeks ago, we pointed out the potential trend reversal that was shaping up in US Crude Oil Fund ($USO), an ETF that tracks the price of crude oil futures. At the time, the trade failed to trigger for buy entry, but it has held up well since then. As mentioned above, a commodity ETF like $USO is not directly affected by the day-to-day volatility of the broad market. Take a look at the weekly chart pattern of $USO:



As you can see, $USO is not yet actionable as a swing trade entry. However, we will be internally monitoring the price action of $USO over the next week for potential entry on a breakout above the resistance levels. Specifically, we are looking for a potential move above the swing high from two weeks ago ($35.06). Entering right now would be premature, as the breakout has yet to happen and the price action could chop around for several weeks more.

Guggenheim Solar ETF ($TAN) missed our pullback trigger for buy entry last Friday, as we were looking for an entry on an undercut of the previous day's low. However, last Friday's high in $TAN correlated to a test of the downtrend line from May 2013. As such, a breakout above that level also presents an ideal buy entry in case the pullback doesn't come. Subscribing members to The Wagner Daily should note the new trigger, stop, and target prices for this swing trade setups on today's watchlist.

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.