Join        Login             Stock Quote

The Wagner Daily - May 29, 2008

 May 29, 2008 10:05 AM

Like the previous day, stocks meandered through the session in a choppy, see-saw fashion before finishing in slightly positive territory. This time, however, the Nasdaq lagged behind. The S&P 500 and Dow Jones Industrial Average posted identical gains of 0.4%, but the Nasdaq Composite ticked just 0.2% higher. Considering the tech-heavy Nasdaq more than doubled the gains of the S&P and Dow with its 1.5% advance on Tuesday, it was interesting that the Nasdaq showed such relative weakness yesterday. Small and mid-cap stocks turned in the best performance, as the Russell 2000 and S&P Midcap 400 rallied 0.6% and 0.9% respectively. The broad-based indexes settled near the top of their indecisive, intraday ranges.

[Related -Gold (GLD) Goes Down Again – Charting the New Key Levels]

Total volume in the NYSE increased 12% above the previous day's level, while volume in the Nasdaq rose 7%. The gains on higher volume technically enabled both the S&P and Nasdaq to register an "accumulation day," but intraday price action was certainly not very indicative of institutional buying. Turnover in both exchanges also remained well below 50-day average levels. Market internals were nominally positive. In both the NYSE and Nasdaq, advancing volume exceeded declining volume by a margin of less than 3 to 2.

The International sector comprised many of the top-performing ETFs yesterday. The main stock market indexes of the U.S. are more than ten percent below their 52-week highs, but ETFs from several global regions remain at or near their all-time highs. Within the international arena, Market Vectors Russia (RSX) was among the biggest of yesterday's gainers. Cruising 1.9% higher, RSX followed through on the previous day's bullish "hammer" candlestick pattern, breaking out above resistance of its hourly downtrend line in the process. As per our analysis in yesterday morning's Wagner Daily, the breakout caused RSX to trigger our buy entry as well. Presently, RSX is showing an unrealized point gain of seventy cents since yesterday afternoon's entry. We also remain long the Semiconductor HOLDR (SMH) and StreetTRACKS Gold Trust (GLD), both of which are also showing marked-to-market gains. We'll continue trailing stops higher on all open positions in order to protect profits and minimize risk.

[Related -Buy Gold While You Still Can!]

Turning in an even better performance yesterday was the iShares Brazil Index (EWZ), which raced 3.6% higher yesterday. Bouncing off support of its 20-day exponential moving average after a gentle, one-week pullback, EWZ has a similar daily chart pattern to RSX. Barring any sudden, major weakness in the U.S. markets, both EWZ and RSX are now positioned to set fresh record highs in the coming days.

Next Page >>12
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageUS REITs Edged Higher Last Week As Emerging Markets Slumped

Real estate investment trusts (REITs) in the US took the lead in last week’s shortened holiday trading week read on...

article imageA Contrarian Perspective On The Short EuroTtrade

As the euro continues to drift lower, it has become the accepted wisdom that we are headed for parity with read on...

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

To See a Bear Market, Look to Gold Not Stocks
More Articles on: ETFs

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.