ONE EGG Scan for August 14th

ONE EGG Scan Results for Today:

The disruption in the markets as a result of China continues. The valiant attempt on Thursday for the markets to move forward ended in a draw. Nothing over negative on the day, but no answer either. I will still with wait and see. Letting the opportunities unfold, but the risk levels have to work. It is easy to look backwards at charts and ask why you didn’t take a trade like short Russia or short the Emerging Markets, but the risk of the trades are so high it tough to put money at risk. In fact, I am not willing to take on high risk trades in high risk market environments.  That said… on with the show.

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. Still setting up.
  • 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. Still holding above the the entry point of $10.45.
  • SDOW – short side for the Dow hit the scans as well and looked to breakout on Wednesday, but gave up the intraday gains… watching $20.15 level as breakout for short trade.
  • RUSS – the short side of Russia. Consolidation pattern on the uptrend is what we are watching. $42.35 next level to clear on the upside.
  • 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. Nice acceleration on Thursday.
  • EDZ – short emerging markets breaking to near term high. Tested… watch for reversal if buyers step in near term. Currency issues and US driving the direction 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. Stops are mush on this trade if the reversal steps in.
  • SLV – silver following through on the bottom reversal with three solid days on upside. Testing the move higher? Watch to hold the $14.50 mark.
  • ERY – short energy popped back on the scans Thursday. Watch to see if this finds the upside again.
  • ITB – homebuilders are making a break higher from consolidation. Watch for test and entry on the break higher.

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. Held breakout on Thursday.

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.