ONE EGG Scan for April 9th

The buyers are not convincing me on this move. We remain in the defined trading ranges, we keep flirting with the 50 DMA, it is very specific sector driven day by day, and neither the buyers or the sellers are fully engaged. The VIX index is flat and drifting lower validating a lethargic view of traders. Until this changes we like the sidelines. Fighting the market only makes you tired and in the end too brain damaged to take advantage of the new trend that will emerge.

Result for the Daily EGG Scan: 

Leadership outlook…

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.¬†Spiked higher and continues to run. $53 stop.

RUSL РRussia is moving higher, but the volatility is a challenge for many. Working on the upside with small test last two days. Watch and adjust your stops as we approach the February highs. Profit taking would offer another opportunity on upside to add to positions.

EDC РEmerging markets have benefited from the weaker dollar and positive global money rotation. Solid rally with Asia helping. Small test on Tuesday, but managed a continuation of the move higher and closed at the $27.90 high as the next goal. Raise stops to $25.85.

UCO – Clears the $7.75 resistance again.¬†But, the speculation move met some facts it didn’t like and the selling commenced. Hit stop at $8. Still speculative and still only a trading position as news rules.

TMF – Watching treasury bonds on the FOMC minutes…¬†Got some clarity and it was a bit different from the actual meeting tone. Rate hike is back on the table putting some volatility back in the sector.

BIB – Biotech is still alive and well. The bounce on Wednesday sets up a double bottom pattern on the current test that held the 50 DMA. The move is dependent on the sentiment towards growth from investors looking forward. The trade setup is valid for now. Entry $167.50.

Possible EGG Position:

The overall uncertainty and lack of clarity is keeping us on the sidelines. Global markets are moving and US is frustrating. Speculation is driving and that doesn’t help the charts or the psyche for trading.