EGG Scan for June 19th

All this rotation is making me dizzy. Sluggish start to the day, but the FOMC meeting put a push in the interest sensitive stocks like utilities, up 2.2%, on the comments. Can they hold the move into tomorrow? I would have to say yes. Until there is data that the economic picture is different than the Fed is forecasting this sector should find renewed interest going forward.

You can see in the scans the last week the rotation is not leading to leadership as much as more breadth in the move higher. That is good overall and it will eventually result in specific leadership as well. We just have to be patient.

Running the EGG Scans – First the daily winners…

  • Today’s leaders – RUSL (Russia) bounced back 7.5%, NUGT (Gold Miners) jumped 7.6%, SVXY (volatility disappears again), EDC (Emerging Markets) Nice bounce, GREK (Greece) nice bounce off test in move higher. Honorable mention XLU (Utilities) nice bounce through resistance.
  • Tuesday”s leaders – TAN (Solar), PBW (Clean Energy), SVXY (short VIX), TNA (Small Caps) and FAS (Financials). Honorable mention KRE (Regional Banks) & KRE (Banks).
  • Monday’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.

Looking at the last week of scans above we have to look for common ground and the sectors with the best upside or downside momentum. Energy, Alternative Energy, Precious Metals, Utilities, and Short VIX are the leaders. Trading them comes down to ERX, TAN, GDXJ, XLU, and SVXY.

EGG Model Watch List:

EGG Tracking…

  1. 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.

Current EGG:

TAN is the Egg Model at $42.30. Solid move higher on Tuesday and followed by some testing today. The interest in the sector invited money into the sector short term. We have adjusted the stop and watching to see how it follows through tomorrow.