ONE EGG Scan for April 17th

Boring day, but held the gains from Wednesday. Oil closed higher to rally energy and broad markets back from a negative open. Today ends the trading week and we are looking for a move to new highs. Friday’s are always of interest and we will remain patient for now.

Result for the Daily EGG Scan: 

Leadership outlook…

YINN – China’s has pushed vertical the last two weeks and now has paused. The consolidation at the high is a positive in that it is not selling. Booked¬†some gains off the table on Thursday, adjust stops higher and watching.¬†Growth is stalling, but thus far traders are being patient.

RUSL – Russia is moving higher, but the volatility is a challenge for many. Upside is catching momentum again with the move higher and a big 5% gain on Wednesday.¬†Took some profits last week, watching this unfold¬†on the balance with big move. Tested on Thursday, but doesn’t look done yet.

EDC РEmerging markets have benefited from the positive global money rotation. Solid rally with small test, but followed with some consolidation of the move higher. Holding above the 200 DMA. Raise stops to $27.25 and let it run. Added some upside on Thursday.

ERX РEnergy is trying to push higher, but the volatility in crude oil is keeping the progress slow and steady. Nice gain on Tuesday to recapture the loss from Monday. Trend off the March low still in play and $66 the target hit on the trade Wednesday. $60 entry (on test) to add a position is attractive currently. Banked some gains, looking to see how it unfolds.

GASL/FCG – natural gas is moving higher as the energy stocks rebound overall. Positive moves in the sector. Joined the others on the upside in the energy sector.

KRE – regional banks moved back near the previous highs with the start to earnings beginning today. Regional banks are favorable longer term if the Fed will follow through with rate hikes. $41.40 level to watch. Broke through on Wednesday for entry trade. Tested and held on Thursday.

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 hit entry at $36.50. Nice follow through on Wednesday, but the sub-sector was the weakest link in energy… watching how it unfold today.

Watching this week: RUSL ($30.15 entry) , GASL ($3.90 entry), BIB ($173.50 entry), UCO ($8.10 entry), SOXL ($141.75 entry), EWZ ($34.05 entry), SPXL ($92.10 entry)

Possible EGG Position:

ERX hit target at $66 and watching. Recommend taking profit.

OIH hit entry and added solid gain on Wednesday. Tested lower, stop $37.50 now.

Today: Watching TNA (follow through on the new high), SOXL (resumption of the uptrend and leadership for NASDAQ) $142.80 entry, and SPXL (break to new high for the index from the consolidation pattern and leadership). $93.80 entry.