Mixed start to the week as biotech’s pull down the small caps and the NASDAQ on profit taking and rotation. Big question: where is the money going? Global? The US market sectors showed no signs of inflows that mattered today. On the other hand Europe, Asia and Emerging Markets continue to show inflows on money. Don’t assume anything as this all unfolds. Today is an important day for the broad markets direction.
Result for the Daily EGG Scan:
The results of scan list produce… DGAZ (ready break higher on lower natural gas prices.) BRZU (cup and handle break higher and follow through. Stop $7.75) URA (double bottom breakout? stop $11.50) TECL (break from consolidation pattern and solid follow through. stop $153) SOCL (reversal on selling… entry $12) GLD (jumped 2% on a revers off support at $113.)
Moves of interest from Monday:
GREK (at resistance bottoming pattern.)
GDXJ (basing trading range breakout $25.)
TUR (bottoming range at resistance.)
DBB (breakout confirmed on upside.)
ECH (breakout from trading range.)
Still Tracking Leaders:
YINN – China is still a leader on the scans, still volatile, but pushing higher. Watching how today unfolds. Showing some fatigue at the highs. Tight stops if you own it and see how it unfolds.
RUSL – Russia recovered from the big sell off April 17th. Upside is still in play, but the volatility is back on the worries. Trade upside if bounce holds as it tests the $27.87 support. Entry $32.10 and look for move back to the previous highs $36.80. Fatigue setting in or resting to move higher? Watch.
EDC – Emerging markets have benefited from the positive global money rotation. The negatives tested $28.25 support and held. Remains above the 200 DMA. Raise stops to $29.50 and watch. Solid move higher to end the week on positive note.
ERX – Energy 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. Fatigue setting in or resting to move higher? Watch.
Possible EGG Position:
ERX didn’t follow through, but watching the flag pattern setup now for break higher. Entry $66.
SOXS selling in semi’s accelerated on Friday. $11.90 entry if this continues is attractive for a trade on the sentiment drop and sellers taking control.
EURL made break high with Europe move. Watching to see how it unfolds on Monday. Entry $35.75 test on move higher. Gapped open and watching again.