ONE EGG Scan for August 20th

ONE EGG Scan Results for Today:

Wednesday was UGLY! The bounce has given way to some selling, but the sentiment shift is showing the downside gaining some traction. We still have to take it for what it is until the sideways movement breaks and gives some clarity in direction. Small caps leading the negative in the major indexes. The global markets showing additional weakness with the emerging markets leading the downside. One day at a time.

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 Wednesday.
  • IWM – short side for small cap reversed and the upside cleared $121.25 again? Watching. Testing support $118.80.
  • 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 entry 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. gapped higher again.
  • 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. Sold off on Wednesday supply data, big jump higher.
  • 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. Upside back on Wednesday.
  • ERY – short energy popped back on the scans. Watch to see if this finds the upside again. Upside back!
  • 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.
  • ITB – homebuilders building a trend micro term.
  • XLU – utilities building a trend micro term.
  • LABD – short biotech starting to trend higher.
  • TZA – short small cap starting to trend higher.
  • SIL – silver miners upside gains in play.
  • SOXS – short semiconductors starting to trend higher again.

Current EGG Position:

Downside showing some conviction on the charts. Watching to see if the buyers throw in the towel. The outlook isn’t negative, but the sentiment shift is starting to show signs of disbelief in the future outlook for stocks. Need some speculation to move out of the way and the trends to develop, up or down.