Commentary:

Stocks finished strong for the second consecutive day on increasing volume. The tech rich Nasdaq led the advance by posting an impressive 1.4% gain on the session. Yesterday’s move in the Nasdaq brought the index within a whisker of its 50-day MA. The S&P MidCap 400 posted a 1% advance, as the S&P 500 rose by 0.9%. The Dow Jones Industrial Average and the small-cap Russell 2000 ended the day higher by 0.7% and 0.6% respectively.

Market internals were mixed on Thursday. Volume increased on the Nasdaq by 13.9%, but volume dropped off by 1.3% on the NYSE. Advancing volume topped declining volume by a ratio of 3.6 to 1 on the NYSE and 3.9 to 1 on the Nasdaq. Thursday’s internals suggest a second consecutive day of institutional accumulation for the Nasdaq. The lighter volume on the NYSE prevented the S&P 500 from logging a bullish accumulation day.

Yesterday we issued an intraday alert placing the Oil Service HOLDRS ETF (OIH) on the watchlist. This potential long position has not yet triggered. For our subscribing members, trade details can be found in the watchlist segment of the newsletter.

The iShares Dow Jones Transportation Average Index ETF (IYT) has shown relative strength during the recent market turmoil. IYT is now consolidating at a key resistance level first tested on March 9th. A move above the four day high of $93.82 may present a buying opportunity in this ETF.

The market has shown resiliency since the devastation in Japan. However, a big test of how strong the market is should become clear over the next several trading days. The Nasdaq is still lagging the other major indices and we are now at key resistance levels across the broad market. Caution is warranted for both bears and bulls.

---

Today’s Watchlist:

OIH
Long

Shares = 100
Trigger = 161.22
Stop = 157.21
Target = n/a
Dividend Date = n/a

Notes = see commentary above

---

Daily Performance Report:

Below is an overview of all open positions, as well as a performance report on all positions that were closed only since the previous day’s newsletter. Net P/L figures are based on the $50,000 Wagner Daily model account size. Changes to open positions since the previous report are listed in red text below. Please review the Wagner Daily Subscriber Guide for important, automatic rules on trigger and stop prices

Having trouble seeing the position summary graphic above?
Click here to view it directly on your Internet browser instead.

Notes:

• 
  Per intraday alert, our split stop in QID triggered and we are now out of the full position. XLY has been removed from the watchlist for now. Please note the change to 100 shares in the OIH setup.
  
  
• Reminder to subscribers – Intraday Trade Alerts to your e-mail and/or mobile phone are normally only sent to indicate a CHANGE to the pre-market plan that is detailed in each morning’s Wagner Daily. We sometimes send a courtesy alert just to confirm action that was already detailed in the pre-market newsletter, but this is not always the case. If no alert is received to the contrary, one should always assume we’re honoring all stops and trigger prices listed in each morning’s Wagner Daily. But whenever CHANGES to the pre-market stops or trigger prices are necessary, alerts are sent on an AS-NEEDED basis. Just a reminder of the purpose of Intraday Trade Alerts.
  
  
• For those of you whose ISPs occasionally deliver your e-mail with a delay, make sure you’re signed up to receive our free text message alerts sent to your mobile phone. This provides a great way to have redundancy on all Intraday Trade Alerts. Send your request to support@morpheustrading.com if not already set up for this value-added feature we provide to subscribers.

Edited by Deron Wagner,
MTG Founder and
Head Trader