ONE EGG Scan for February 17th

New week, new highs, new worries? The markets have been good as solving one challenge only to focus on another the last few months. Greece and Russia are peaceful for now and the attention shifts too… Greece? Yes, the speculation is not unraveling the other direction that Greece is not willing to compromise. Watch the issue in Europe and how the US reacts this morning. Never boring when news is driving the direction.

Sectors to Watch:Ā 

TheĀ bounceĀ in the major indexesĀ achieved new highs and all is well? Generally speaking after a new highs is established a test will follow. I would look for that to take place near term and how it unfolds will be of interest to the current swing on the upside. Futures are pointing lower this to start the week which puts on the defensive to start with. Let the day start and test the temperature of investors.

Same suspects are on watch list this week:

XLE – broke $80.50 resistance and needs to confirm the move to offer opportunity or trade back near the $88 level.

OIL – crude move higher to resistance $12.28. entry at the $12.30 on momentum would be interesting short term.

XME – miners picking up momentum on steel, copper and other base metals moving higher.

SPY, QQQ, MDY, IWM all moving to new highs last week and looking for the upside follow through short term.

Result for the Daily EGG Scan:Ā 

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

Natural Gas (UGAZ) reversal off the low, but has some work to do to gain the trust of investors. Traders like the micro term view with weather impacting demand.

Russia (RUSL) nice follow through on the agreement and breakout. Not for the faint of heart the volatility in the sector is unpredictable short term with news.

Current EGG Position:

We own IWM on the break higher, 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.