EGG Scan for May 28th

Tuesday makes if five of the last six days on the upside. Investors don’t want to miss out on the opportunity? This move is putting plenty of opportunities before us relative to the EGG Model and investing overall. The key is to fight your emotions and remain disciplined in your approach. We markets breakout from extended periods of consolidation or downtrends, investors want to buy everything and/or chase all the opportunities that are presented. It is equally important to note that bad decision making can be covered up by the rise in the major indexes. Defined entries, exits and targets are still important to managing the risk of any position taken.

Running the EGG Scans – First the daily winners…

  • DUST gains 11.3% as gold tumbles below support. Key break of support and something to watch moving forward on the downside.
  • BIB breaks out as well on the solid move in biotech. Another sector to watch if the upside unfolds.
  • SVXY continues the trend to the upside and keeps it position as one of the leaders the last two weeks.
  • FAS shows that financials can move higher. Bank of America files with Fed again and everyone is happy. Watching to see if the sector can finally gain any traction.
  • DRN returns to the upside after sideways movement of late. REITs are one of our long term holdings and the upside move offers some confidence to the sector for now.

EGG Model Watch List:

EGG setup going¬†forward…

  1. SOXL – Semiconductors. (SOXX, SMH) ¬†entry $90.20. stop $87.80. This gapped above the entry point¬†on Tuesday. I don’t like chasing these entries and $91.70 was best entry point raising the risk of the trade.
  2. PJP – Pharma (breaking from consolidation and gaining momentum.) entry $58.75, stop $58. Another gap open with a $59 entry point and adding to the risk of the trade.
  3. OR CURE – healthcare overall starting to show positive upside momentum. IBB is moving with biotech as well. Both gapped higher as well.

Current EGG:

QLD is still in play for those who took the trade. Played out well in the end despite the shaky start. Closed on the high Friday and still looks like it wants to move higher. Look for the move on Monday to take some profit as the target is hit. Take 1/2 off on the high intraday. (Did so near the close of the day since we never really hit a intrday high. Sold 1/2 $106, Stop $105.40.)  I added 1 share to the table to track the trade out for those who entered the position, adjust your stop and manage the position out.