Another day of uncertainty as the market starts higher and then reverses to close negative. The lack of confidence is building and that may lead to further downside as we move forward. Running the scans tonight is starting to give a different view of what is taking place in the markets. Global leading and Emerging Market Bonds break higher. Scans for May 8th:
- ERUS – held the gains and still looking for an upside follow through and break above the $18.50 – 18.60 level. Upside trade looks positive if Russia sticks to the stand off plan.
- TUR – nice follow through on the upside, keeping the uptrend in play.
- EZA – South Africa broke from consolidation… look for the follow through.
- ECH – Chile looking to break from the consolidation to continue the upside trend.
- Emerging Market Bonds – EMB, EMLC and PCY all heading higher.
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. Looking to add the balance if we get the follow through on the upside.
TZA – Short Small Cap 3x ETF is another fund that rose near the top of our scan list for the EGG. $18.75 level is a break above the recent highs and based on the negative sentiment this could take reasonable move lower. If EEM doesn’t accelerate and TZA does, sell the position in EEM and add the TZA trade.