ONE EGG Scan for April 21st

Bounce as buyers show up again. Buy the dip seems to still be alive and well. The futures are pointing higher early showing the positive results from earnings after-hours. The key still remains leadership or lack thereof. Tech posted positive day and if it can follow through with the SOXX picking up some slack it would help. Energy as a leader isn’t a good sign for the markets with oil prices rising. Watching for the rotation back to healthcare, tech, financial and consumer.

Result for the Daily EGG Scan: 

Leadership outlook…

Short trades fade as the buyers step back to the top the scan lists on Monday.

Back on the top of the scan list… DGAZ (natural gas moving lower again.) TECL (break from consolidation pattern of interest.) ZSL (silver move lower and short breaking out?) SVXY (short VIX trade working and break above $79.15 of interest.) SOXL (semiconductors in position to move higher again.) Each made moves of interest and worth tracking in today’s trading.

YINN РChina fell more than 4% Friday, but bounced Monday and overnight it is back near the previous highs. Still a leader on the scans, still volatile and watching how today unfolds. Willing to add positions back on short term trades.

RUSL РRussia fell hard on Friday as well. Hit support at $27.87. Upside is still in play, but the volatility is back on the worries. Took some profits last week and hit our stops on Friday. Trade upside if bounce holds as it tests the $27.87 support.

EDC – Emerging markets have benefited from the positive global money rotation. The negatives on Friday tested $28.25 support and held. Remains above the 200 DMA. Raise stops to $27.25 and watch. Move over $28.80 willing to add to positions.

ERX РEnergy is trying to push higher, but the volatility in crude oil is keeping the progress slow and steady. Early selling on Friday was in reaction to the broad markets. Trend off the March low still in play and $66 the target hit on the trade (booked some profit). $62.50 stop in place. Clears $67 willing to add some to position.

Possible EGG Position:

SOXL – looking for the follow through move in the consolidation and sentiment towards the sector as a leader. $143.50 level to clear.

TECL – consolidation pattern setup. $146 entry is of interest, but needs to show shift in sentiment towards the sector overall.