ONE EGG Scan for January 13th

Oil price keep downside a possibility short term. The sellers stepped in to start the day, but didn’t finish it? There is still earnings to contend with and the outlook is positive from analyst. Watching to see how that unfolds as the reports start with positive news from Alcoa. Banks are going to be the first test starting on Wednesday.

Futures are pointing higher and add to the confusion for investors. Two days up… Two days down… the yo-yo effect is in play based on a lack of clarity. Earnings starting may help, but the oil issues are still on the table with crude down 2.6% pre-market and below the $45 level. Patience remains the goal.

Sectors Worthy of Attention: 

Crude oil has been in a progressive downtrend hitting a low of $47 last week. NO RALLY only selling for the commodity down 5% on Monday.

Semiconductors bounced back to a key resistance point last week 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. Selling continue on Monday, but near the 50 DMA? still watching how it unfolds.

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 going forward. The talk is positive, but still plenty of issue facing both the country and the global markets. Down nearly 1% on Monday?

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. Nice upside follow through on the miners with the uncertainty creating money flow to the metal.

Downside views in S&P 500 index (SPXS) $21.10 entry is interesting. Hit the entry on Monday’s selling.

NASDAQ Index on downside if renew selling. QID $40.20 entry is selling continues. Hit the entry on Monday’s selling.

Result for the Daily EGG Scan: 

NUGT – entry $15.60 – Hit entry on nice follow through on Monday. (SIL jumped through resistance as well on Monday.)

TMF – treasury bonds continued move higher on yields moving lower Monday.

DUG or ERY – Short energy sector trades broke out on Monday.

VXX – Volatility index trade broke higher on Monday.

Markets are still playing the worry game as the uncertainty is the name of the game. The selling on Friday and Monday was mixed with investors still uncertain of trusting the data and oil price worries again 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.