EGG Scan for September 23rd

Markets find it tough going to start the week as the sellers continue to control the market on a negative day for the broad indexes. The Russell 2000 Small Cap index led the downside for the broad market posting a 1.5% loss on the day and a break of the 1160 support. This is getting interesting as the direction continues to fight over leadership. Investors continue to hang on the news and emotions of the day and for now we give up the advance from last week’s FOMC meeting. Patience and more patience as this all unfolds and the direction is defined.

Running the EGG Scans┬á– First the daily winners…

Follow through on Friday’s selling leads to a test of support again.┬áThe choppy markets are still too much risk for me and I am unwilling to take the risk exposure short term in attempting to pick the direction of the day. Exercise patience as this all plays out. List copies what happened on Friday….

Gold miners (DUST) short side is exerting itself as the selling gains momentum once again. Gold and silver continue to push lower and little optimism in terms of the upside returning near term. Short trade is working well for now.

Gold (DZZ) short side continues in the uptrend established off the August lows. (High for gold)

Small Caps (TZA) short side winner on the day jumping as the selling in small caps continues.

Emerging Markets (EDZ) short side winner again with the sellers stepping back into the sector.

Russia (RUSS) short side of Russia back as the pattern attempts to complete a move and establish the short trade for now.

Positive side hangs in for now…

Healthcare (CURE) bounced back to a new high and resumed the uptrend. Tested on Monday just to make sure the buyers are willing to hold on. Watching the test.

Technology (TECL) Testing lower and back towards the bottom of the current trading range. watching for some clarity short term.

Semiconductors (SOXL) testing the conviction of the buyers currently. Watch

Financials (FAS) testing the move higher and causing questions. I still like this sector as it is the EGG currently.

Transports (IYT) broke to new highs on Wednesday and gives it up on Monday. Can the positive outlook continue in the sector going forward?

As I stated in the market notes… patience and let this unfold.

Trade Considerations: 

DSLV – Short Silver ETF steadily climbing as the commodity falls in price.

Current EGG:

Financials continue to hold the upside we test the rally and forfeit gains. The overall negative sentiment testing investors near term resolve to own the sector. Watching to see how it responds on Tuesday. Without some upside follow through near term we will take the money off the table short term and find better momentum opportunities.