ONE EGG Scan for August 3rd

ONE EGG Scan Results for Today:

Markets closed the week on mixed day, but positive for the month of July along with being one of the more volatile months. As we start August I am hoping for more of a trend to develop, but then that would mean clarity would return the markets… and that may be more wishful thinking than reality. Below we run the scan to start the week and we will see how they unfold.

Scan results¬†based on the last close of the markets…

  • FAS – financials were back on the upside trek and show some promise with the move above the $34.50 level again. However they have stalled, but still looking positive.
  • SPXL – the S&P 500 index upside trade offer a entry point for the brave of heart. We will continue with in our knitting of looking for the opportunity. Patience.¬†
  • SVXY – inverse of the VIX played out well last week. Hit the entry point $88 on the reversal and moved higher on the day. Stop at break even and watching. Complacency setting in for near term.
  • CURE – healthcare jumped back from the selling as biotech and providers both moved higher on the day. Hit the $41.75 point of interest for upside trade.
  • YANG – Followed through to the break lower. Short trade¬†still setting up to continue near term.
  • 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. Stops in place $114.80 on the bounce back.
  • DUST – the break lower for gold is a big negative for the miners.¬†Big flag at the top… should continue higher, but watching.
  • EDZ – short emerging markets showing up on scan again.
  • TMF – Treasury bond rallies again on the move to safety? Breaking from a double bottom on the upside? Bring the Fed into question and the upside is realistic. But, still not a believer.
  • Relative to Friday’s scans watching… IBB, ERY, URE, XLU, INDL and IEF.

Moves of interest for the trailing ten days: 

  • SVXY – nice move higher as the volatility is sucked out of the market. overbought? Watching.
  • YANG – short China followed through upside¬†and need to manage the risk of the trade near term.
  • DUST – short gold miners have been trending higher since the lows in June. It has some chop, but still worth the risk. Close above $21.50 to add positions and now managing the stops if it reverses at any point soon. Stop at¬†$31.
  • 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.
  • BAB – Build America Bonds – break from the base on the upside. Interest rates are declining putting this opportunity in place.
  • The 10-day scans are not showing much in terms of trends which only validates the short term trading cycle we are in… as well as the sideways market as seen in the charts since March. Additional parts to watch as this unfolds based on Friday’s scans are RUSS, DGAZ, JDST, EDZ and TMF.

Current EGG Position:

The broad indexes bounced and followed through¬†to complete the reversal, but remain well within the trading range that has been in place since March. Still needs to show some¬†conviction from the buyers and it needs to step up the volume. I am not a buyer on the bounce. No real leadership. Biotech did bounce nicely off the near term support, but still want to see the push from the buyers in a broader context. Herein lies the issues with the current cycle… by the time we get some conviction or momentum in a direction… the opposite side steps in to reverse whatever good was done relative to the trend. Thus, remain patient and let this all unfold going forward.¬†We ended the trading week on the upside and look to see how it start the new week.