ONE EGG Scan for April 23rd

Positive opens sells lower and then recovers to close higher on the day. The action intraday is no different than the daily charts and the uncertainty from investors on direction. What was expect from earning and first quarter economic data was clarity about direction four weeks later it still has not developed. Some positives on the day in the technology sector and some not so positives in the healthcare and consumer sectors. Patience remains the key word.

Result for the Daily EGG Scan: 

Leadership outlook…

Back on the top of the scan list… BRZU (cup and handle break higher?) URA (double bottom breakout?) TMV (breakout from base in short bond trade) 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.

Move lower in bonds (TLT) is of interest moving forward. Commodities slowing along with dollar and global economic data. Technology made key move higher on Wednesday and watching how that plays out. today and forward. Pockets of interest in a market stuck currently.

YINN РChina fell more than 4% Friday, but bounced back to 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. Watch futures today on news.

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 without much to show yet.

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. Watching for rally off the test and consolidation at high.

Possible EGG Position:

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. WEDNESDAY: Selling early raised question marks and I didn’t trust the intraday reversal! Why? Listening to the news in my head of what is taking place relative to earnings. I know it is a technical trade, but my fundamental side got in the way. Watching today for safe entry, but still willing to error to the conservative side.

Missed opportunities cost me nothing. Losses have to be made up and that adds pressure to a process that is already challenging at best emotionally. No need to add to the challenge if the uncertainty in my head overrides what I see. There is always an opportunities and we have to learn to take the ones we trust.