Stocks ended the session mixed on heavy trade. The NYSE and S&P 500 posted modest gains of 0.3% and 0.1% respectively. The Nasdaq closed fractionally lower, while the Dow Jones Industrial Average, S&P MidCap 400 and small-cap Russell 200 all shed 0.1%. The airline, home builder and automotive sectors displayed relative weakness on Friday, while coal and oil services showed strength.
For the third time in as many days, the session closed with internals mixed. Volume skyrocketed on the Nasdaq by 20.7% and on the NYSE by 58.4%. Advancing volume outpaced declining volume by 1.2 to 1 on both exchanges. Although the Nasdaq narrowly missed an accumulation day, the NYSE saw institutional buying as it closed at a new 52 week high.
Since testing its 50-day MA on March 12th, the iShares MSCI Brazil Index Fund (NYSEARCA:EWZ) has been consolidating in a pennant like formation at its 20-day EMA. A move above the seven day high of $68.30 could provide a buying opportunity in this ETF. We are adding EWZ to the watchlist. Trade details can be found in the watchlist segment of the newsletter.
The commentary above is an abbreviated version of our daily ETF and stock swing trading newsletter. Subscribers to the full version also receive additional commentary, detailed entry and exit prices for potential swing trade entries, and a section dedicated to individual stock trades. To learn more about our trading strategy, please visit our swing trading blog.
Deron Wagner is a professional hedge fund manager who founded Morpheus Trading Group, a swing trader education firm, in 2002. He is the author of the best-selling book, Trading ETFs: Gaining An Edge With Technical Analysis. His new book, Advanced Technical Analysis of ETFs, will be released in August 2012. Past television appearances include CNBC, ABC, and Yahoo! FinanceVision. Wagner is also a frequent guest speaker at various trading events around the world, and can be reached by sending e-mail to: firstname.lastname@example.org.
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