--> Wagner Daily Lite for March 8, 2012 – ($DVY) and ($USO) Potential Long Candidates

Wagner Daily Lite for March 8, 2012 – ($DVY) and ($USO) Potential Long Candidates

Stocks recovered from Tuesday’s distribution day but trade was light. In a reversal of Tuesday’s performance, the small-cap Russell 2000 led the move higher, as it tacked on 1.1%. The S&P MidCap 400 added 1.0%, while the Nadaq improved by 0.9%. The S&P 500 and the Dow Jones Industrial Average improved by 0.7% and 0.6% respectively. Home construction, home improvement retailers and financials showed relative strength, while non ferrous metals, gold and airlines underperformed.

In Tuesday’s newsletter we commented that the United States Oil Fund (USO) may be a pullback long candidate. Yesterday, USO undercut its 20-day EMA for a second consecutive day and held this support level. Further, USO rallied to close near session highs. A move above yesterday’s high of $40.74 could provide a buy entry trigger in this ETF.

The iShares Dow Jones Select Dividend Index (DVY) has pulled back and held support just above its 50-day MA over the past two sessions. Yesterday, DVY formed a reversal candle as it retested Tuesday’s low. A volume fueled move above the two day high of $55.11 could present a buying opportunity in this ETF.

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.

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