Nothing is moving the last three days of trading and the futures are flat again… 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. Boring week for trading, but positive for the trend to hold.
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. This test seems to be on taking place at a stand still. So far it has been three days of nothing and… today we see what’s next.
BIB – biotech followed through on the break higher! One small victory in the scans. I like the upside in biotech to continue.
UGA – gasoline is in position to break higher and take a lead in the energy commodities. I like the trade.
TBT – short treasury trade is still working. Break above the near term resistance and follow through is trade opportunity as well.
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:
UGA – break above $36.60 of interest. Not enough volume for EGG trade, but I like the move.
SOXL – in position to break to new high and resume leadership
DXJ – Japan ETF moving higher.
BIB – biotech bounced back from the selling and is leading higher. Added a position in the ETF strategy. Nice bounce higher as stated above.
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.