ONE EGG Scan for January 12th

New week and same story. The indexes lack direction as we start the earning season. The downside Friday keeps one big question mark hanging over the sentiment. Futures are pointing slightly higher today heading into the start of the week. Willing to see what the tone is after having the weekend to digest the economic data and review expectations for earnings expectations. We are at a critical point relative direction and the charts show the major indexes could go either way. It is time to consider some downside trade ideas if they break lower and forfeit last weeks bounce from Wednesday and Thursday.

Sectors Worthy of Attention: 

Crude oil has been in a progressive downtrend hitting a low of $47 last week. The commodity is still looking for buyers to step in and spark a rally. Watching to see if there is a possible upside trade in this move. USO at $18.80 or UCO at $8.75. Watch how this unfolds today.

Semiconductors bounced back to a key resistance point on Thursday and did a reasonable job of holding that move on Friday. SOXX needs to move through the $92.70 mark and it could offer an upside opportunity on a continuation move with the broad markets. SOXL would offer a trade to the previous high.

FXI gapped above the entry prices and didn’t add the trade on Thursday.¬†Tested on Friday and still looking to see how this unfolds on Monday. The talk is positive, but still plenty of issue facing both the country and the global markets.

Gold minders are attempting to make a break higher as gold makes a move. Trading opportunity only at this point, but the upside in gold is gaining some short term trading traction. $118.50 target on gold would push the miners higher as well.

Downside views in S&P 500 index (SPXS) $21.10 entry is interesting. NASDAQ Index on downside if renew selling. QID $40.20 entry is selling continues.

Result for the Daily EGG Scan: 

NUGT – entry $15.60

UCO – entry $8.75.

SOXL – entry $133.65

Markets are still playing the worry game as the uncertainty is the name of the game. The selling on Friday was mixed with investors still uncertain of trusting the data in front of earnings kicking off on Monday. Trading environment as long term views remain a flip of the coin. Patience is the name of the game short term. Watching to start the week for insight on direction.