Wagner Daily Lite – Feb. 24, 2012 ($PPH, $IYM, $IAU)

Stocks shrugged off early losses to close near session highs on heavier trade. All five major indices closed higher with high beta issues leading the advance. The small-cap Russell 2000 came storming back yesterday to erase virtually all of this week’s losses. By the closing bell, the Russell had added 1.5%. The S&P MidCap 400 climbed 0.9%, while the Nasdaq posted a 0.8% gain. Both the S&P 500 and the Dow Jones Industrial Average finished higher by 0.4%. The telecommunications and construction sectors were the day’s big winners, while airlines and food retailers/wholesalers saw the biggest declines.

Market internals were bullish across the board yesterday. Volume climbed on the Nasdaq by 2.7% and on the NYSE by 5.2%. Advancing volume overpowered declining volume by a ratio of 2.2 to 1 on the NYSE and 2.6 t 1 on the Nasdaq. Yesterday was a big day for market bulls as it was a clear accumulation day. The higher volume suggests institutional investors were active in the market yesterday.

Yesterday, the Market Vectors Pharmaceuticals ETF (PPH) reversed sharply off of its 20-day EMA and is now poised to break out of its recent trading range. A volume propelled move above the February 21st high of $37.20 could provide a buy entry trigger for this ETF. We are placing PPH back on the watchlist, and trade details are provided to our members in the watchlist segment of The Wagner Daily.

The iShares Dow Jones US Basic Materials Sector ETF (IYM) formed a bullish reversal candle yesterday… (continued in Wagner Daily newsletter).

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