ONE EGG Scan for August 13th

ONE EGG Scan Results for Today:

Intraday selling and reversal to positive territory on the NASDAQ and S&P 500 index was interesting to watch. It defines news driven emotions for markets. Yes the challenges around the yuan are real. Yes we should be concerned about the manipulation of currency and the impact to the US and global markets. But, fear syndrome only last for so long and on Wednesday that was about and hour and a half. Once the Chinese government intervened the rally back to even or positive started for the markets. Big question is how it unfolds from here. This week has destroyed the scans based on how we view them relative to the strategy. This happens sometimes and we have to clear the slate and let the parts unfold as they may going forward.

That said, below are some of the things to watch, but there is little to trade on without more data and activity relative to the upside or downside. Thus, we practice our patience and watch as it unfolds.

Scan results based on the last close of the markets…

  • BIS – short biotech showed up on the scan working on a base and looking for breakout above the $29 mark for a reversal and downside trade on the sector.
  • TZA – short side for small cap showed up in the scans as the sector continues be under downside pressure. $10.45 is next level of resistance to clear.
  • SDOW – short side for the Dow hit the scans as well and looked to breakout on Wednesday, but gave up the intraday gains… watching.
  • RUSS – the short side of Russia. Consolidation pattern on the uptrend is what we are watching.
  • YANG – Short China – break above $93.15 is key for the uptrend to continue in the short ETF.
  • DWTI – short crude trade remains in play as the price of the commodity remains under pressure on the supply/demand side of the equation not equaling out. Dollar not helping.
  • EDZ – short emerging markets breaking to near term high. Tested Wednesday… watch for reversal if buyers step in near term.
  • TMF – Treasury bond rallies again on the move to safety? Breaking from a double bottom on the upside? China and the yuan the latest additive to the upside trend off the July lows.
  • UGAZ – consolidation and base in place. Nice move higher on Wednesday put the ETF on the scan.
  • SLV – silver following through on the bottom reversal with three solid days on upside.

Moves of interest for the trailing ten days: 

  • YANG – short China followed through upside and need to manage the risk of the trade near term.
  • DWTI – short oil is now in a flag pattern consolidating the gains. A continuation is worth trading, but plenty of news/speculation on oil rallying? Caution on the commodity is a must. Downside back in play and upside continues to move.
  • XLU – utilities are moving off the lows and advancing. Money rotating on interest rates dropping. Nice break higher and follow through off the July lows.
  • JO – Coffee was attempting a reversal and breakout. Watching for indication of a opportunity relative to this two week scan.

Current EGG Position:

Focus is on the outcome of the latest issues relative to the Chinese yuan. Until the noise clears it makes the volatility higher day to day and the results are sketchy. One day at a time and we will focus on the strategy not the news.