In a recent report, we mentioned a potential pullback buy developing in Global X FTSE Greece 20 ETF ($GREK), after a base breakout to new highs in early January. The pullback looked constructive until Tuesday's heavy volume selloff to the 50-day MA.

False breakouts are a big part of momentum trading, and we have seen plenty of stocks/ETFs recover to new highs after a quick shakeout to the 50-day MA. For the $GREK pullback entry to remain intact, the action must hold above the 50-day MA in the short-term. A breakdown below the 50-day MA would suggest that the base needs more time to develop:



After a strong move off the lows of the base, Guggenheim Solar ETF ($TAN) pulled back to the rising 10-day MA on Tuesday and formed an inside day on Wednesday with light volume. The 20-day EMA has cleared the 50-day MA, and the 50-day MA has turned up after several weeks of trending sideways to slightly lower. These bullish signs suggest that $TAN is ready to resume its uptrend after a few months of rest.



If $TAN is unable to hold the 10-day MA over the next few days, we could see a deeper retracement to the 20 or 50-day MA over the next few weeks.

However, if $TAN continues to ride its 10-day MA, then this three-day pullback might be all we get. As such, we are placing $TAN on today's official watchlist. Regular subscribers to our nightly swing trading report should note our exact entry, stop, and target prices on the "watchlist" section of today's issue.

Our current long ETF positions in $SEA and $SOCL are in great shape from our early entry points (both are showing unrealized gains of nearly 10%). $PKB is improving after clearing the prior high. $TBT is still in trouble and needs to hold the 200-day MA or our stop will trigger.

On the individual stock side, we have quite a few decent winners going, such as $SCTY +39.5%, $FB +21.2%, and $TSLA +20%. With these winning trades, we will continue to ride the profits as long as price action remains bullish.

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.