EGG Scans Update

Tuesday was not as friendly on the upside, but it managed to hold on the upside barely. The scan of the S&P 500 index shows eclectic leadership on the day. GMRC was up 7.5%, NTAP up 3.5% and MCK up 3.3%. No clarity returns! Transports were the leader up 0.4%, Energy up 0.37% and downs from there. Small caps (down 1%), REITs (down 0.5%) and Retail (down 0.4%) were the leaders on the downside. Not a great day for trends and upside moves.

Running the EGG Scans – First the daily winners… same as Monday short natural gas ETFs (KOLD), long crude oil (UCO), short gold miners (DUST), Chile (ECH) and Korea (EWY) on the upside moves. Short natural gas is is trending an we too the trade in the ONLY ETF model today. Crude oil broke above resistance and trade entry at $34.85 on UCO. Chile (ECH) broke above the $47.15 resistance. Korea (EWY) cleared $64 resistance on upside move.

The five day scan is where I am focused currently for leaders to the upside breaking from the consolidation pattern set up the last six weeks.

  • KOLD or DGAZ leveraged short natural gas is leading over the trailing 5 and 10 day scan periods. $42.60 on KOLD is the break of the next resistance levels. Still leading an hit the entry point for adding to the trade.
  • SVXY – short volatility index is still in the top of the scan. Holding in the ONLY ETF Model still.
  • ERUS – Russia has moved off the lows on positive comments from Putin. Move above $18.64 would be breakout point for the ETF. (broke higher on Tuesday above resistance and entry.
  • EEM – emerging markets breaks from the consolidation pattern and the leverage is version (EDC) is in the top performing for the trailing five days. (Still doing well and own as the EGG currently.
  • EPI – India gapped higher the last two trading days and looks optimistic short term. Remains a vertical move — adjust your stops to lock in the gain on reversal.
  • DRN – leveraged Real Estate is the other leader. IYR is the non-leveraged version and is up nicely as well.

EGG Model Watch List: Posted EEM trade for Thusday. Gap over the entry and then tested lower and keep moving lower. Added partial position at 41.80 into the close today. We added to the position again on Friday as it stayed in the range and looked lazy. That changed on the gap open Monday and held the gain on the day of 1.7% and 0.4% on Tuesday. We will manage our position going forward.

There is cash as we only took what ended up as a 1/2 position. Watching to see if the opportunity to add arises or we can use the current scans to add a new EGG to the basket and manage both. Not what I like to do, but we will put that money to work if the opportunity presents itself.