ONE EGG Scan for April 10th

The buyers remain present and accounted for, but they remain timid at the buy side. However, the sellers seem to have taken a vacation await some negative momentum. Global is leading, bonds are pscycho over the Fed, commodities are speculative at best, dollar is dominating the currency markets and US stocks are waiting for the proverbial shoe to drop on earnings. This all makes for an interesting environment for investing short term. Patience and disciplined approach are a must.

Result for the Daily EGG Scan: 

Leadership outlook…

YINN – China’s pushes higher again and the drive has gone vertical. Took some gains off the table on Thursday, adjust stops higher and watch.¬†Adjusted on Friday, but still in play.

RUSL РRussia is moving higher, but the volatility is a challenge for many. Upside is catching momentum again with the move higher. Took some profits early Friday, watching how it unfolds on the balance.

EDC РEmerging markets have benefited from the positive global money rotation into China. Solid rally with small test, but followed with a continuation of the move higher and back above the 200 DMA. Raise stops to $27.25 and let it run.

ERX – Energy is trying to push higher, but the volatility in crude oil is keeping the progress slow and steady. Nice gain on Thursday to recapture the loss from Wednesday. Trend off the March low still in play and $66 the target on the trade. $60 entry (on test) to add a position is attractive currently.

SOXL – Semiconductors posted solid move on Thursday. The move above the $139 resistance was good as well as clearing the 50 DMA. RSI pointed higher and back above 50 as well. Confirm the move and trade $142.50 entry.

OIH – Oil Services, like the broader energy sector making move. The bottom range is now back at the high and in position to reverse the downtrend. Nice set up and entry at $36.50.

EUO – Euro moved lower and the short trade moved through the entry at the $27.05 level on Thursday with the target at $28.50. Still like this trade if it tests lower early.

Watching this week: BRZU, RUSL, GASL, BIB, UCO, SOXL, EWZ, SPXL

Possible EGG Position:

Getting some clarity technically with the large caps moving in specific sectors. Technology, energy and retail are the most positive and energy… if crude holds within range… offers a trade opportunity. Added ERX to the watch list failed to capture the trade Friday as the intraday pattern setup gave a higher entry point of $60.40. I am still watching for the test this week and entry. I expect this to be a volatile position and we will give it more than normal room… thus, 1/2 position to manage the downside risk of the trade.¬†Entry $60 and we will take a 1/2 position. $56.20 is stop. $66 is the target.

Also looking at OIH in the energy sector as alternative trade. As stated above a break above the $36.50 give good entry point. Adding to the table as well to start the week.