ONE EGG Scan for August 25th

ONE EGG Scan Results for Today:

If Friday got the UGLY prize today was the picture next to the word in the dictionary. VIX spikes to 53 at the open showing the level of fear in the markets. Small rally intraday that faded into the close. There is little to say…  the charts are worth a thousand words and the trends are broken needless to say. Watching for the opportunities that result from this mess near term. Short side trades have worked well and stops need to be in place to prevent the forfeiture of gains. One day at a time!

Scan results based on the last close of the markets…

BIS – Short biotech followed through on the downside with big day Monday.
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. Short trade followed through on Monday.
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 follow through on trade last two days.
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. Nice jump higher for the short trade.
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!

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.
LABD – short biotech starting to trend higher.
TZA – short small cap starting to trend higher.
SOXS – short semiconductors starting to trend higher again.
Establishing downtrends in SPY, QQQ, DIA, IEV, EWJ, and others.

Current EGG Position:

Downside showing some conviction on the charts with big move lower on Monday. Some now say it is oversold and that may well be the case, but until the move reverses you honor the trend and the fear in the markets currently. Raise stops on the short trades and let it unfold. Speculation has definitely shifted to the downside and the VIX reflects that with the spike to 53 on Monday. Patience and risk management are the key.