More chop from the markets as we open lower and bounce back throughout the day. VIX index made move to 11.6, but nothing that would rattle the markets short term. Bond, telecom, utilities and Preferred stocks were the leading sectors, not exactly the group you would want to see on a follow up day to the bounce on Wednesday.
Healthcare is still one of the leaders and added slight gain on the upside today. Uptrend in play and the testing of the highs could provide an opportunity for trades.
Technology still moving sideways and looking for the lost leadership. SOXX still showing a rounding top and moved below the 10 DMA. IGN is topping as well with a break of support that bounced back today and holding on for now. IGV holding in the current uptrend off the May lows. The pennant pattern is worth watching for the upside to continue. FDN is stalled on the move higher and resistance at the $59.30 level currently. Still watching to see how this unfolds.
Consumer Discretionary (XLY) is in a wedge consolidation pattern the last there weeks. Retail has been the challenge with pressure on discretionary income from gasoline, taxes and food costs. Watching for the deciding outcome and the bias is towards the upside currently.
See the daily trading notes for more on other sectors to watch.
Running the EGG Scans – First the daily winners…
DGAZ (short natural gas) lower demand projections push commodity lower along with oil (DTO short oil ETF).
YINN (China) more stimulus rumored to be on the way. The bounce off the support is in play with potential move back to previous high.
NUGT (gold miners) still consolidating near the highs currently. Looking for continuation move in the miners which would mean a move high in gold prices.
TMF (treasury bonds 20+ yr) Yields are falling again as investors rotate money back towards safety again after the run higher off the May 15th low.
DPG (global utilities) nice move higher as the steady uptrend remains in play for the sector.
EGG Model Scan Watching…
There is some rotation, but we are also consolidating in place. There have been some solid leaders, but we need confirmation of the upside to continue and patience to let it all evolve. Alternative energy, energy, healthcare, technology and small caps have been leading. Commodities have made a solid run of late with gold and silver moving higher. The ripple effect is the miners moving higher as well. Base metals have been moving as well. Agriculture is starting to move higher from a base and worth watching as well. Bottom line patience as this all unfolds going forward.
No current EGG, but watching some sectors of interest above.