EGG Scan for May 22nd

Markets gap higher, test and continue at the high of the day. No comment on the overall impact, you can read the trading notes, but I will say this is getting tough relative to the short term trades and trends. Thus, I remain patient and keep focused on what is ahead.

Running the EGG Scans – First the daily winners… TUR, YINN, SPXL, UCO, DIG & EDC… China was up along with the global markets overall. Turkey showed solid bounce back from some selling, but still in uptrend. QQQ and SPXL both did well today and and keeping the dream alive. Oil move higher as reflected in UCO and DIG. Emerging markets (EDC) made a nice upside move as well. Some old friend resurfacing in the daily move.

SVXY still trending higher and leading relative to the VIX index. ERUS (Russia) is doing well also as it has followed through nicely since the withdrawal of troops.

ERUS , UCO, DRN and BKF have offered some movement on the upside the last two weeks, but it has been a challenging, choppy environment for trading. UCO shows the trend in place with oil and hit new near term high.

Worth watching… SOXL as semiconductors have moved off the low the last four days, but is now in position to follow through on the upside. QLD  shows the NASDAQ 100 showing strength with the large cap stocks taking on some leadership of late. I like the upside here and we had this posted at the EGG for Tuesday. The volatility, gaps and intraday weakness kept me from adding the position today. Watching to see how it plays out tomorrow and still willing to add the position for short term upside to continue. JMF – Energy MLPs have been in solid uptrend, but are in position to accelerate higher.. watching to see how it unfolds.

There is plenty to watch and for now we will let this rest as the direction remains challenged by uncertainty, and investors are more nervous than a long tail cat in a room full of rocking chairs.

EGG Model Watch List:

Monitoring QLD to the EGG Watch and it was at the entry point today on the gap higher… out thought the situation based on what took place yesterday. Waited on the pullback and the it was trading at the entry point as we faced the FOMC minutes. With Fed in play from yesterday… passed on the trade. I will watch to see how it unfolds tomorrow. If you took the entry… manage the risk accordingly.

Patience for now.