Buyers are ready to take the market higher… right? I assume there is some thread of truth to that statement, but still not convinced the buyers are ready to lead. The stimulus driver is back, but is it enough to override all the issues facing stocks relative to the economy, geopolitics, and earnings? All I can say is we will find out moving forward. We take what the market gives and leave the debating to the media talking heads.
Result for the Daily EGG Scan:
YINN – China’s hope of stimulus pushed the country higher… higher oil prices validate things are going well??? Okay, but I would be very cautious about that driving prices. Watch for test of the move higher
RUSL – Russia is moving higher, but the volatility is a challenge for many. Buyers continue the break higher technically. Working so far on the upside. Watch for test of the move and adjust your stops as we approach the February highs.
EDC – Emerging markets have benefited from the weaker dollar and positive global money rotation. Solid three day rally with Asia helping. Moved through the first level of resistance and the $27.90 high is the next goal. Raise stops to $25.85.
UCO – Clears the $7.75 resistance again. Rally on! Speculation on demand driving the price of the commodity.
NUGT – Gold prices jumping on speculation of global inflation on the stimulus in place. $11.75 entry is attractive if gold holds move above the $1217 level.
USLV – Silver got in on the move higher and at resistance. Clear $22.60 is of interest for a trade in the metal.
SOXS – Watching the downside as play. Needs to clear resistance and follow through… $12.25 entry is of interest as trade opportunity. Still a possibility despite the bounce on Monday.
GASL – Got in on the move in energy space. Solid gain in the stocks, but watching to see if it holds the move.
Possible EGG Position:
Are the buyers back? That is the million dollar question. The leadership is not convincing, but is setting up to push through if the upside remains. Watching today as follow through on the move Monday. If so… we trade… if not, we watch.