Stocks closed out the week in positive fashion, with most broad market averages setting a new closing high for the year. Of the five major averages we cover on a daily basis, the S&P Midcap 400 was the only index not to set a new 52-week high or new 52-week closing high last week.

With the financial and energy sectors hitting new highs on the year, the S&P 500 has decent momentum and will probably continue to push higher. The healthcare sector continues to drive the NASDAQ Composite, led by a strong breakout to new highs in the iShares NASDAQ Biotech ETF ($IBB).

After a strong move to the prior swing high last Wednesday, the UltraShort 20+ Year T-bond ETF ($TBT) has backed off over the past few days and has pulled back in, stopping just shy of its 20-day exponential moving average.

We like the price action in $TBT over the past few weeks, as it held support at the test of the downtrend line in mid-November. We look for $TBT to hold above the 50-day MA as it chops around for a bit to digest last week's movement:



The 50-day MA is still sloping lower, but the 20-day EMA is now above the 50-day MA and trending higher. The 200-day MA is also in a clear uptrend, so as soon as the 50-day MA begins to trend higher, $TBT should be ready to resume its new uptrend.

We are placing $TBT on today's Wagner Daily watchlist, so subscribing members should note our exact buy trigger, stop, and target prices in the "Watchlist" section of today's report.

Spot gold and silver, as well as associated mining stocks, continue to struggle. As the stocks and ETF are breaking down to new 52-week lows on the year, the weakness present us with decent short entries on a subsequent bounce into resistance within the next few weeks.

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.