While the broad based averages remain in a solid uptrend, the majority of leading stocks continue to lag, with just a handful breaking out to new highs the past few weeks. Because of this, we will continue to take a few shots on the ETF side, while remaining a bit more cautious with individual stocks.

PowerShares DWA Developed Markets Momentum Portfolio ($PIZ) has tightened up nicely over the past few weeks, holding support of the 10-week MA:



The daily chart shows the price action breaking above the short-term downtrend line last Friday, and pulling back to that line this week, which we call testing the backside of a downtrend line.

A breakout above the current range highs could potential lead to a breakout above all-time highs at 26.90 from 2008:



The weekly chart of iShares MSCI Japan Index ($EWJ) still looks good, as it has been tightening up for a few months just below the highs of last May. A breakout above last week's high could lead to new 52-week highs and spark a move to the $14 area on the monthly chart:

 

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.