The attempt to move higher on Wednesday gave way to close flat again. The leadership is shifting back to the large cap NASDAQ stocks. The story leading the markets currently remains very fluid… different headlines every day resulting in different leaders. Consolidation top in play and remain cautious at this level.
Result for the Daily EGG Scan:
CURE – broke through resistance and momentum on the week. $141 entry Friday. Watch the upside continuation.
TMF – buyers returned following the Fed testimony? This is worth watching the next couple of days.
SOXL – Broke to new high and resumed leadership… did that at $146. Tested Monday and showed solid strength on Tuesday.
SVXY – worries are gone relative to confidence looking forward and the short trade continues to work well for investors.
RUSL – buyers show up again after several days of selling and testing the move higher. Still a very risky trade until there is greater clarity.
UGA – gasoline returned to the list with 5% gain on Wednesday. Refinery story impacting the speculation in price.
IBB – biotech bounced back after some selling and could hit new highs to continue the uptrend.
Current EGG Position:
We own IWM on the break higher, but not showing the momentum based on the setup. We could say that about all the major indexes at this point… we will be patient and see how it unfolds again today. Raised the stop to protect our gains.
Still looking for opportunities in this stalled state for the broad indexes… today could provide more clues on those positions. The rotation in the leaders is news driven and looking for some fundamental support.