Wagner Daily Lite – Feb. 14, 2012 ($SOXL, $UCO)

Stocks rebounded from Friday’s selloff but on below average trade.  All five major indices posted gains.  The small-cap Russell 2000 led the advance as it reclaimed the 1.4% loss it incurred on Friday.  The S&P erased its 1.1% loss on Friday by posting a 1.1% gain yesterday.  The Nasdaq added 1.0%, while the S&P 500 and the Dow Jones Industrial Average added 0.7% and 0.6% respectively.

Yesterday, on a spike in volume, the ProShares Ultra Dow Jones-AIG Crude Oil ETF (UCO) broke above its recent downtrend line and set a new 4-day high.  A volume assisted move back above yesterday’s high of $42.14 could provide a buying opportunity in this ETF.  We’re following UCO closely for a potential swing trade entry. The setup is shown on the daily chart below:

(annotated charts and trade details available only to Wagner Daily subscribers)

The Direxion Daily Semiconductor 3x Bull ETF (SOXL) formed a distinct reversal candle yesterday, as it undercut its two day low and 10-day moving average.  A rally above last Friday’s high of $40.65 could provide a long entry trigger for this ETF.  We are placing SOXL on the watchlist.  Trade details are available to our members in the watchlist segment of the newletter.

(annotated charts and trade details available only to Wagner Daily subscribers)

The market continues to show resiliency as buyers stepped in once again on Monday.  Nonetheless, Monday’s light volume suggests that institutions were not particularly active during the session.  This type of activity is common when markets are consolidating.

The commentary above is an excerpt from our nightly Wagner Daily newsletter. Subscribing members receive annotated ETF and stock charts, detailed entry and exit prices for potential swing trade entries, and additional technical market commentary. Click here to become a member for as low as $58 per month. Your full satisfaction is guaranteed.