Mixed day that found a way to bring the buyers back in after a test lower. This is still a choppy market micro term looking for direction. We have been down this road recently and pushed higher. The question in the headlines still revolves around trending direction or correction. No winner today and the daily EGG Scans are turning up some more interesting moves and some that are trending. As we have stated over and over all year… patience is the key.
To make the point I left the last three trading days plus today’s results below. There are some parts surfacing and attempting to exert leadership, but the overall results are mixed.
Running the EGG Scans – First the daily winners…
- Today’s leaders – UPW (Utilities), XBI (biotech), IHI (Medical Devices), TAN (Solar) and DIG (Energy). IHI benefited from the acquisition in the sector. TAN is EGG today.
- Friday’s leaders – YINN (China), ERX (Energy), TAN (Solar), SOCL (Social Media), USLV (Silver) and RUSL (Russia).
- Thursday’s leaders – UCO (Crude Oil), SIL (Silver miners), GDXJ (junior gold miners), TAN (solar power) UGAZ (natural gas), and DBE (energy).
- Wednesday’s Leaders – RUSL (down 4%), SOCL (down 0.7%), PALL (down 4.5%), FCG (up 1.4%), JMF (down 1.3%) I stated they gave a different look, and that look didn’t last for more than one day.
- VIX back near 12.8 and VXX still on my watch list.
Energy remains a leader as crude moves above $107. Solar energy is making a move and in position to break higher and resume the previous uptrend. Russia is retreating on the Ukraine news over the weekend and the arguments are back on the front page, moved well below the stops at $20.05. As the dust settles the opportunities will arise. The short side is still on the table as well SRS (real estate) SMN (basic materials) were in the top of the list on Monday. One day at at time and let the trends develop.
EGG Model Watch List:
- BRCM – giving the best look relative to the semiconductors leadership. $31.15 entry last week was optimal looking back. Thus, a test of that level and hold, or a move through $31.50 on volume would be of interest for a EGG trade on individual stock level. Got the early move last Thursday (entry $31.50) and it followed through on Friday. News pushed the stock up 12% last week. Sold half at $35 and $34 stop on the balance. See how this plays out… the news wasn’t that earth shattering and willing to take my gift of gains. Nice bounce back towards the highs the balance of the week. Raise stop to $37 on balance of shares. Topping and volume falling back to normal tighter stops and watching.
ADDED TAN to the Egg Model today at $42.30.
TAN is of interest on a clear move through the $42 level. The rise is oil prices will have this as a logical place for investor to want to extend investing opportunities on the move. Watching for the break higher and a confirmation. Entry is $42.30. Watch the volume on the purchase as it can run thin at times.