Wagner Daily Lite for March 12, 2012 – Potential buy entry in Vietnam ETF ($VNM)

Equities closed higher for a third consecutive day but on light trade. The small-cap Russell 2000 matched Thursday’s performance, as it once again tacked on 1.3%. The S&P MidCap 400 posted a solid 0.9% gain, while the Nasdaq added 0.6%. Big cap stocks lagged on the day, as the S&P 500 and Dow Jones Industrial Average could only muster small 0.4% and 0.1% advances, respectively. Only a few sectors finished in the red on the day including, non-ferrous metals, railroads and internet services. Winners included the homebuilder, communications and transportation sectors.

Internals ended mixed for a second consecutive day. Turnover ended fractionally lower on the Nasdaq but 1.5% lower on the Big Board. However, advancing volume outperformed declining volume by a ratio of 2.5 to 1 on the NYSE and 2.1 to 1 on the Nasdaq. Friday’s light volume points to a lack of institutional participation on the day.

Since setting a new swing high on March 5th, the Market Vectors Vietnam ETF (VNM) has pulled back and been consolidating at its 10-day EMA. We often look to the 10-day MA as a key support level when an ETF is in a strong uptrend. A volume assisted move back above the four day high of $20.21 could present a buying opportunity in this ETF.

Since January 13th of this year, the ProShares UltraShort Eruo (EUO) has been in a distinct downtrend. However, over the past four sessions, EUO has Rallied and closed above the downtrend line on two separate occasions. The next resistance level for EUO is near $20.00. If EUO can rally back up to and consolidate near this key mark, it could become a long candidate. We are monitoring EUO carefully for a possible entry.

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