ONE EGG Scan for August 21st

ONE EGG Scan Results for Today:

If Wednesday was ugly… Thursday was worse. The downside confirms and sets up the short trades on the follow through downside. As I say, the fundamentals don’t matter until they matter. Thursday they mattered and the sellers exerted control over the broad indexes with a mass exodus from just about everything. The defensive rotation to bonds was in full bloom. We will watch to see how today unfolds.

Scan results based on the last close of the markets…

  • BIS – Short biotech followed through on the downside and hit the entry point.
  • IWM – short side for small cap reversed and the upside cleared $121.25 again? Watching. Testing support $118.80. TZA hit the entry point on the selling.
  • SDOW – short side for the Dow hit the scans as well and looked to breakout… watching $20.15 level as breakout for short trade. Nice pop on the move Thursday.
  • 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 track.
  • 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. Tested lower watch stops and reacts to the market.

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.
  • 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 with big move lower on Thursday. Watching to see if the buyers continue to 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 on the downside similar to what we see in the Russell 2000 small cap index.