In terms of new setups, we do not have anything actionable on the long or short side today. We are monitoring the inverted UltraShort Brazil ETF ($BZQ) for a pullback entry over the next few weeks.

We are also looking at a biotech ETF ($PBE), which looks to be forming a tight base at the highs after stalling just above $42.

The price action is holding up around the 20-day EMA, and if the action continues to chop around, then the 50-day MA may soon provide support as well. On the weekly chart (not listed below), the 10-week MA is already at $39.



Our current long position in the shipping ETF ($SEA) closed back above the 50-day MA on heavy volume. If it can close above the 50-day MA on Friday, then it will have formed a bullish reversal candle on the weekly 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.