In last week's report, we mentioned the relative strength in Direxion Daily China Bull 3x Shares ETF ($YINN). $YINN continues to impress, holding above the 10-day MA since regaining the 50-day MA on July 11. The split daily chart below details the pattern relative strength in $YINN (top chart) vs. $SPY (bottom chart).



Both charts look the same for the most part until August. $YINN shows clear relative strength, setting higher swing highs and lows above the horizontal breakout level, while $SPY begins to trend lower.

On the daily chart, we see $YINN resting at the 10-day MA while volume has tapered off the past two sessions. As such, we are placing $YINN on today's watchlist with a fairly tight stop (regular subscribers to The Wagner Daily newsletter should note our exact and preset buy trigger, stop, and target prices for this trade setup). We refer to this type of trade as a G.O.N.G. setup, which means "go or no go" because of the tight stop. Note that we will also trade $YINN with reduced share size if it triggers.



After breaking below the 50-day MA last week, Merrill Lynch Semiconductors HOLDRS ($SMH) is basically in no mans land, trading between the 50 and 200-day MAs. However, there is key support from a weekly uptrend line, as shown on the chart below. A move above yesterday's high could provide decent entry point for those looking to climb aboard $SMH on weakness.



The iShares Silver Trust ($AGQ) swing trade setup triggered our buy entry to the penny yesterday, then reversed off the day's high alongside of the broad market. A move above Wednesday's high (plus a few cents) is a logical entry point for those who have not already entered.

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.