EGG Scan for May 7th

Choppy isn’t even a good adjective for the current market… psycho seems to fit. Running the scans today shows the rotation to the global markets as the ETFs are rising to the top of the five day scans. Scans for May 7th:

  • ERUS – jumped 5% on Wednesday as the issues with Russia/Ukraine hear good news. Tough to trade this type of news, but if Russia is true to their word, the sector will continue move higher short term.
  • EWZ – continues breakout upside move. Global markets are showing up in all the scans of late and offer opportunity short term.
  • DUST – Gold miners moved lower on Wednesday as gold failed to beak higher. Wednesday gold fell 1.3% failing to break above the resistance at $126.50. short play on miners worth watching on this move going forward.
  • EWW – Mexico broke from a cup and handle pattern on Tuesday, with nice follow through on Wednesday. Test and follow through higher would be of interest for trade.
  • TUR – see below – continues to show on the scan.
  • EDC – Emerging markets in position to break from a consolidation pattern short term. I like this upside trade short term.

EGG Model Watch List: Posted EEM trade for tomorrow.

The list below are the top five opportunities from the scans run after May 6th close. I focused on the trailing five days as the scan based on the choppy trading, and came up with the following:

  • TUR – Accelerated through resistance at the $52.70 level and continue to push higher. With Russia/Ukraine in the news viewed the risk as too high. Follow up: still in position to break higher and with Russia stating they are going to step back, could offer a catalyst moving forward.
  • IYZ – Telecom has been accelerating off the April 28th low and is now in position to complete a double bottom breakout. I like this trade to $30.50 target. Follow up: Reversal and testing the previous support.
  • SVXY – Volatility index continues to fall showing little anxiety from investors of late. This was a trade in the ONLY ETF model. Still in play. Follow up: solid gain on Wednesday to follow through on the upside.
  • DTO – Short crude oil has been showing on the scans for several days, but the speculation issue relative to Russia makes this a tough trade to risk the money. However, if we take out the current support it is worth the trade. Follow up: oil bounced in price not helping the short follow through.
  • XPH – Healthcare is bouncing and the leader is pharma. We added this trade to the Patten list last week at $95. Clears $96.50 willing to add to the position. Follow up: tested the move higher with some selling on Wednesday.