Commentary:

Stocks began Friday’s session with a strong move up, but around 12:30 pm selling pressure entered the market driving stocks well off the day’s highs. Still, all five major indices closed in the green led by the small-cap Russell 2000. The small cap index ended the session higher by 1.0%. Closely following the Russell was the S&P MidCap 400, which advanced by 0.8% for the day. The Dow Jones Industrial Average, S&P 500 and Nasdaq closed modestly higher by 0.4%, 0.3% and 0.2% respectively.

Market internals were unimpressive on Friday. Volume slipped on the Nasdaq by 7.6% and on the NYSE by 5.6%. Advancing volume modestly outpaced declining volume by a ratio of 1.8 to 1 on the Big Board and 1.6 to 1 on the Nasdaq.

The PowerShares Listed Private Equity ETF (PSP) has made a nice recovery following the recent market turmoil. On Friday, PSP experienced a false breakout on slightly higher volume. This ETF is a potential long entry, but following a false breakout we would like to see a period of consolidation near the breakout highs. The black candles represent the type of price action that would be ideal prior to another move higher. The ideal consolidation could take place over several days to several weeks (or more). We will be tracking PSP closely for as a potential long candidate.

The ETFS Silver Trust ETF (SIVR) has been in a strong uptrend for many months now. Since breaking above resistance on March 23rd, SIVR now appears to be forming a bullish flag-like pattern. A move above Friday’s high of $37.53 could present a buy trigger for this ETF.

Several short term momentum indicators that we monitor suggest that the market may be over-bought. We would not be surprised to see at least a short term pullback in the broad market over the next few days. The Nasdaq continues to underperform. The technology rich index barely managed to close above its 50-day ma on Friday. A few sectors that might provide shorting opportunities in event of a pullback include: technology (semis), real estate and financials. We will be following ETFs in these sectors for possible short entries.

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Today’s Watchlist:

OIH
Long

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

Notes = see commentary from March 25th letter

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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

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Notes:

• 
  No changes to our open positions.
  
  
• 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