EGG Scan for July 2nd

Updated Below for morning futures. 

Technology resumes the leadership role along with the NASDAQ moving higher. The large cap NASDAQ 100 index continues to lead as well with PCLN, REGN and NFLX setting the pace today. The consolation prize goes to Dow nearing the 17,000 threshold. Small caps put on a good show today as well. This is a shift in the scans from what we were seeing the last two weeks. US stocks exert the upside leadership again and the question is will it last? As I wrote in my notes to night… it is not a question of why or how, but that the trend continues to set the upside pace and we go with the trend.

Emerging markets posted a solid gain of nearly 1% on the day with some positives in China’s economic data. and India reversed to the upside following a few days of testing lower. Peru continues to benefit from the move in based metals. Still watching the upside opportunity to unfold in this asset class.

Treasury bonds turned lower today on optimism towards the economic data. This is something to watch as well going forward.

See Trading Notes for July 2nd tomorrow morning for further comments to what is moving.

Running the EGG Scans – First the daily winners…

BIB (biotech) still moving higher is a solid continuation move today.

TNA (small caps) made up for lagging last week the last few days. Still worth watching the trade upside. Move above $81.40 ish level could offer a trade. Gapped above the trade today, but still finished with positive gain on the day.

NASDAQ 100 (QLD) positive move to end the week and post a new high. Large cap technology stocks led the way and worth watching as the uptrend continues. Strong start to this week with two days of climbing higher.

PJP (pharmaceuticals) nice break from the up trending consolidation to hit new high. The healthcare sector remains one of the key leaders as two sub-sectors are in the top of the scans tonight.

EWT (Taiwan) Three up days break higher and leading the upside in the country stocks.

Still on the move…

GLD – Tested slightly, but still positive on the upside leadership. Watching the miners (GDX) as well.

UNG – holding near the support at $24. Break could open the short trades in KOLD.

SIL – silver and silver miners joined in with the gold miners pushing the upside. The flag pattern is ready to break again to the upside.

DBB – base metals nice gain and break higher.

Looking for confirmation on the move in the US stocks today. This will give some opportunities to add them to our potential EGG candidates short term.

EGG Model Scan Watching…

We discussed DRN as potentially regaining upside momentum heading into today’s trading. That looked better in today’s trading than Monday’s. Watching, to regain short term momentum.

China (FXI) was also discussed a s possibility on the upside. It stalled, but I some positive economic data on Tuesday puts it back in the opportunity list.

RUSL (Russia) made move higher last week, but has stalled for now and is testing the current trend. Downside reversal could develop, but we will watch for now.

The rotation back to the previous leaders this week is a welcome change. The key will be the economic data supporting the moves. There is plenty on tap the next few days and we are heading into a holiday weekend. Patience as move forward.

Current EGG:

No Current Egg. Risk/Reward of our scans are not in the parameters we set based on current market conditions.

IWM on move above $120.20 is of interest or TNA at $84.40. (open set to test lower… watch)
FXI at $37.45 on upside confirmation. (Gap open futures near $38) not willing to buy at that level)
EDC at $31.80 on upside confirmation. (Gap open futures near $32.40) not willing to buy at that level)

Look for update as we start the trading day. I want to look at the futures and determine if any of the scan ideas we are watching meet our requirements for entry.