ONE EGG Scan for April 22nd

Opens higher Tuesday, but loses steam as the day progresses. Earnings show weakness continues in the top line revenue. However, stocks buybacks, dividend hikes, M&A activity and job cuts keep the bottom line number in line or better. It is an interesting time for investors. Take what the market gives, keep your stops near by and remain disciplined in your approach. The more you question the process the less you like what you see when it comes to earnings.

Result for the Daily EGG Scan: 

Leadership outlook…

Back on the top of the scan list… BIB (made move above $176 resistance.) 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.) CURE (break above $156 is the key currently.) Each made moves of interest and worth tracking for trades.

YINN РChina fell more than 4% Friday, but bounced Monday and rallied Tuesday. 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. 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. Held on Tuesday without much to show.

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. Look for break higher from the consolidation.

ERX РEnergy is trying to push higher, but the volatility in crude oil is keeping the progress slow and steady. Trend off the March low still in play in play with some testing currently. $66 the target hit on the trade (booked some profit). $62.50 stop in place. Clears $65.40 willing to add some to position. Watch for rally off the test.

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. Gapped above at the open Tuesday and faded. Still watching today for the follow through on the trade.

TECL – consolidation pattern setup. $146 entry is of interest, but needs to show shift in sentiment towards the sector overall. Same gap open and fade… watch how it unfolds today.