Commentary:

Thursday’s action brought stocks modestly lower on mixed trade. At the closing bell both the S&P MidCap 400 and the small-cap Russell 2000 were down by 0.6%. The Down Jones Industrial Average, S&P 500 and the Nasdaq all shed 0.1% for the session. Stocks began the session on firm ground but a 7.1 magnitude aftershock in Tokyo appeared to spur a wave of selling and stocks spent the remainder of the day in recovery mode.

Market internals ended the day mixed. Volume on the Nasdaq fell by 10.60% but increased by 2.5% on the NYSE. Declining volume slightly outpaced advancing volume by 1.3 to 1 on the NYSE and 1.7 to 1 on the Nasdaq. The lack of volume on the Nasdaq suggests that institutions were not significantly involved in yesterday’s selling. The divergence in volume between the two indices further suggests the absence to broad based participation in the sell-off.

Since hitting resistance following its last breakout move on March 18th, the Sprott Physical Silver Trust (PSLV) has been consolidation in an up-trending wedge like pattern. A move above $18.00 could provide a buy entry for this ETF.

The PowerShares Water Resources Portfolio ETF (PHO) has been demonstrating market leadership for several months and is now pulling back toward support of the 20-day EMA. An undercut of the 20-day EMA followed by several days to weeks of consolidation may provide the ideal setup for a long entry in PHO. We will be tracking the price action in PHO for a possible buy entry.

The market has remained resilient over the past several weeks. Thursday appeared to bring another day of consolidation to the market. As we explained in yesterday’s newsletter, the longer the major indices consolidate near the highs, the more likely it becomes that stocks will move higher.

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Today’s Watchlist:

There are no new official setups this morning. We will send an Intraday Alert if any new trades are made.

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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:

• 
  Correction – In yesterday’s closed positions section we incorrectly listed the exit price in SSG as 51.19. The correct sell price was 50.19 which resulted in a $89 loss (scratch).
  
  
• 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