ONE EGG Scan for August 19th

ONE EGG Scan Results for Today:

Monday’s positive moves challenged on Tuesday. Nothing changed in the scans as a result of little changes in the market. Some rotation, but not enough to show any conviction in any direction with the broad indexes or sectors. The count remains five sectors moving higher, four lower and one sideways relative to the micro trends (0-13 weeks).  Patience is the theme and we continue to watch how it unfolds.

Scan results based on the last close of the markets…

  • IBB – tested lower, bounced and showing signs of wanting to move back towards the previous highs. Tested on Tuesday.
  • IWM – short side for small cap reversed and the upside cleared $121.25 again? Watching. Gave half gains back on Tuesday?
  • 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. Buying pushing the short trade lower… watching.
  • 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. added to the upside move with oil hurting currency for Russia.
  • 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. Small bounce higher on Tuesday in crude.
  • 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. Upside continued.
  • 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 must on this trade if the reversal steps in. Holding the upside move. Testing on Tuesday.
  • ERY – short energy popped back on the scans. 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 and followed through.
  • ITB – homebuilders building a trend micro term.
  • XLU – utilities building a trend micro term.

Current EGG Position:

Markets are setting up to retest the previous highs in the current trading range. That will likely lead to a test of the short term move. If the past holds true… it will then test lower. As you know nothing is certain, but we will watch how this unfolds and the key will be to get the uncertainty out of the way… we need some confidence to be restored. Small test on Tuesday, but not enough to change anything at this point.