ONE EGG Scan for February 19th

Nothing is moving the last two days of trading and the futures are point lower (barely) as I post this update. We are positioned in IWM currently and we will look to adjust our stops or lock in some gain on the position if this stall turns lower. The outlook remains on the positive side with sentiment… but we have to stay aware of surroundings when it get this quiet.

Sectors to Watch: 

The¬†bounce¬†in the major indexes¬†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. So far it has been two days of nothing and… today we see what’s next.

OIL – crude move¬†shifted directions on Wednesday as supply data disappointed again. Thinking about it overnight hasn’t helped with crude down nearly $2 near the $50 mark. Watching today as the downside move could be interesting for test of support in the bottoming pattern.

XLU – utilities bounced off the lows of late with the FOMC minutes getting an assist on Wednesday. The potential push back of the hike in interest rates eased some nerves in the sector. Watching to see how that unfolds today.

SPY, QQQ, IWM all stalled at the top… how is this going to unfold moving forward. News is still driving and that puts me on the defensive short term.

Result for the Daily EGG Scan: 

NUGT – gold miners bounced on the day, but have reversed of the micro uptrend and look more determined to test support than rally back to the previous highs. Watching to see if the short trade sets up off this move.

DRN – REITs bounce on the interest rate reprieve from the FOMC minutes. This would have to follow through on the bounce to gain my interest. $92.50 worth watching on the upside if the base pattern holds.

BIB – biotech bounced back from the selling and is leading higher. Added a position in the ETF strategy, but watching to see how it unfold at the highs? Lead or test again?

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.