ONE EGG Scan Results for Today:
The rally fades and then sells into negative territory the last hour of trading Tuesday. This shows the sellers are still in control. It is demoralizing to the buyers as the give back shows selling into the rallies. This is a clear sign of a market in distribution mode versus bounce mode. Today will give us more insight, but we will start the day cautious. If no buyers materialize it will be a challenge to keep the downside in check. The sellers will likely take another shot at creating a lower low. One day at a time is all we can do for now.
Scan results based on the last close of the markets…
BIS – Short biotech followed through on the downside with big day Monday. bounce and fade on Tuesday.
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.
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. bounce and fade.
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.
ERY – short energy popped back on the scans. Watch to see if this finds the upside again. Upside back!
TBT – Bonds sold on the day and showed in the scan Tuesday… watching.
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. Intraday reversal on Tuesday shows the challenges in a down market environment as it gave up a solid gain to close negative on the day. Some still 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.