Commentary:

The market closed higher on Thursday, but volume was off. All five major indices finished in positive territory, with the Nasdaq leading the way. The tech rich index closed the day higher by 0.6%. The S&P MidCap 400 tacked on 0.5%, while the S&P 500 and the small-cap Russell 2000 both improved by 0.2% in yesterday’s action. For the second consecutive session, the Dow Jones Industrial closed fractionally higher.

Volume was down on Thursday. On the NYSE volume drifted lower by 8.4%, while the Nasdaq saw turnover decrease by a modest 0.6%. Advancing volume held the upper hand on Thursday, as it outpaced declining volume by 1.5 to 1 on the NYSE and 2.0 to 1 on the Nasdaq.

The iShares S&P Latin America 40 Index (ILF) is close to losing major support. Yesterday, on a big spike in volume ILF opened near the session high and closed near the session low. A break below Thursday’s low of $51.97 provides a potential short trigger for this ETF. We are placing ILF on the watchlist. Trade details are provided for our members in the watchlist segment of the newsletter.

Since losing Support on January 24th, the iShares MSCI Thailand Investable Market Index ETF (THD) has spent the past three sessions rallying back towards resistance. A move back into the $61.00 – $62.00 range offers a possible short trigger for this ETF.

Over the past three weeks the Regional Bank HOLDRS ETF (RKH) has been consolidating in a bullish pennant like formation. A volume fueled rally above the January 21st high of $88.63 may provide a buying opportunity in RKH.

The market continues to plod higher but without broad participation. There is clear evidence of money rotating among sectors. Broad market volume continues to remain weak.

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Today’s Watchlist:

ILF
Short

Shares = 300
Trigger = 51.89
Stop = 53.27
Target = 48.75
Dividend Date = n/a

Notes = See commentary above

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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:

• 
  Since UNG closed near our stop we will be using a modified version of our gap rules to manage the position today. The new stop will either be the original stop of $5.83 OR 7 cents below the low of the first 20 minutes, whichever is lower.
  
• 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