The Wagner Daily - November 25, 2011
Concise technical analysis and picks of the leading global ETFs
Due to the holiday shortened session, today's issue of The Wagner Daily will be an abbreviated version.
Stocks fell sharply on Wednesday on mixed, but surprisingly high, pre-holiday volume. All five major indices plunged more than 2.0%, with the small-cap Russell 2000 losing 3.2%. The S&P MidCap 400 fell 2.7%, while the Nasdaq, S&P 500 and Dow Jones Industrial Average slid 2.4%, 2.2% and 2.1% respectively.
Market internals were mixed. Volume fell on the Nasdaq by 4.6% but rose on the NYSE by just over 2.0%. Declining volume overwhelmed advancing volume by a factor of 24.3 to 1 on the NYSE and 12 to 1 on the Nasdaq. Based on these figures we would classify Wednesday as a distribution day for the NYSE.
EUO hit its trigger and we entered the trade. Full trade details are available to our subscribers in the watchlist segment of the newsletter.
The market continues to slide lower and there appears to be no respite from the selling pressure. However, four consecutive days of mixed internals have saved the market from what could have been complete carnage.
Deron Wagner is the Founder and Head Portfolio Manager of Morpheus Trading Group, a capital management and trader education firm launched in 2001. Wagner is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis (Bloomberg Press, August 2008), and also appears in the popular DVD video, Sector Trading Strategies (Marketplace Books, June 2002). He is also co-author of both The Long-Term Day Trader (Career Press, April 2000) and The After-Hours Trader (McGraw Hill, August 2000). Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is a frequent guest speaker at various trading and financial conferences around the world, and can be reached by sending e-mail to: firstname.lastname@example.org.
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