ONE EGG Scan for April 1st

Sellers return and the tug-o-war continues. The futures are pointing lower with Asia causing some grief overnight. The dollar weaker against the yen… blah, blah, blah. Pin the reason on the donkey is what I call it, the sellers are looking for control and they are jabbing like a boxing match looking for the opportunity to for the right hook. All I can say is bulls die hard and if the sellers are going to gain control it won’t be without a fight. I assume nothing and we can only trade what we see. I see key support levels approaching on indexes and sector charts. Breaks are a negative, but we have to let it unfold and not speculate.

Result for the Daily EGG Scan: 

Leadership outlook…

SCO – Crude moved back to the downside and the reversal has the short trade back… traders dream.

YINN – China stimulus pushed the country higher… watch this is a volatile trend, but it has moved up nicely short term. Expect more with uncertainty in Asia overnight.

RUSL – Russia is moving higher, but the volatility is a challenge for many. Selling on Tuesday as oil drops again raising more questions.

SOXL – semiconductors dumped last week and two day trade netted a gain, but the reversal on the intraday Thursday was exit point. Cleared $141 on Monday upside… if (big if) can gain some momentum upside trade possible. But, fails downside is back in play… watching that today.

DUST – Gold reversed and miners sold off. Watch to see how gold unfolds with the current uncertainty. Short miners may pan out further if gold move lower.

SPY – Support is $204.50 and a break lower is going to bring the sellers into play. I like the short trade if the break occurs with some volume favoring the sell side.

Possible EGG Position:

Both DUST and EUO made moves as the day progressed on Tuesday… risk setup was to high as volume actually decelerated on the buying in DUST. The gap open for EUO gave no entry point. Still watching how they setup today.

Downside trades are showing interest and I will see how that unfolds as well.