ONE EGG Scan for February 13th

This has been a week about Greece and the EU. With hope of a resolution in theory and Russia signing a peace agreement with the Ukraine the markets are now poised to head to new highs. News driven as it may be the micro trend has shifted to the upside and all is well for now. Take what the market gives until it changes it’s mind. Manage your risk simply put.

Sectors to Watch: 

The bounce in the major indexes to the upside is positive. The NASDAQ and Midcap sectors moved to new highs on Thursday. The S&P 500 and Russell 2000 indexes are on the heels of breaking higher as well. Today is the end of the week and nothing looks to be in the way of heading higher. One day at a time is all we can do for now.

SPY $204.50 was next resistance and cleared. Need to close above $209 today and look to next week for a follow through.

QQQ $103.30 was resistance it cleared and hit new highs. Watching for follow through and move to the $111 level.

XLE $80.50 is resistance to take out and move higher.

Result for the Daily EGG Scan: 

Short VIX (SVXY) nice breakout move on Thursday and added to the S&P 500 Strategy.

Europe (EURL) nice reversal on the Russia/Ukraine agreement worth watching for follow through on the upside move.

Russia (RUSL) nice follow through on the agreement. Watch the risk and volatility.

Crude Oil (UCO) gained 4%, but remains volatile and uncertain on direction.

Current EGG Position:

We own IWM on the break higher this week, but not showing the momentum based on the setup. We will be patient, but if this doesn’t gain upside momentum we will look at other options for the EGG going forward.