Friday’s late day rally, Monday’s follow through on the bounce off support, and everyone is ready to talk upside momentum in the broad markets. This is the same market that last Wednesday everyone was ready to sell on the downside. Clarity, conviction and momentum are all missing in the current market environment. Thus, we are willing to be patient and see how this unfolds moving forward.
Running the EGG Scans – First the daily winners… Russell Small Caps (TNA) opposite of the scans run for Friday. TECL, technology was another big mover on the day. SVXY shows the lack of volatility as the short trade on the VIX continues to prosper. SOXX showed a positive move in the semincoductors, UCO show oil back in the picture on the upside, etc. The challenge is the up and down rotation is taking about 3-5 days on either side… thus no real clarity on either side for now. Patience is the key.
There is plenty to watch and for now we will let this rest and the direction be defined as the rotation to the upside is back. Will it last? Not willing to guess on that front at the current time.
EGG Model Watch List: Hit stop on TZA Monday.
For now willing to watch and see how this will unfold. No new EGG post today. I will run more scans tonight and in the AM and if something shows different than the initial scans we will post to the table.