ONE EGG Scan for January 14th

Housing gets blame for volatility, but it still relates back to destruction in oil prices. Futures are pointing lower and adding 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 added to the confusion and today banks report and that may add as well. The sales reports for December are out with hope of being better… not sounding optimistic am I… 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 to $45 pre-market. SCO remains the best trade.

FXI is volatile, but working it’s way to a new high. It is one of those positions that is like riding a roller coaster. Still looking at the upside trade.

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. Miners were down 4% on Tuesday validating volatility is in everything.

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

NASDAQ Index on downside is renew selling. QID $40.20 entry is selling continues. Hit the entry on Monday’s selling. Still gaining some downside momentum.

UNG bounced 5%? dead cat bounce or upside? watching today.

Result for the Daily EGG Scan: 

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

DUG or ERY – Short energy sector trades broke out on Monday and followed through on Tuesday.

VXX – Volatility index trade broke higher on Monday. Followed through on Tuesday.

SOXS – short side of semiconductors setting up.

Markets are still playing the worry game as the uncertainty is the name of the game. The selling on Monday and Tuesday was mixed with investors still uncertain of trusting the data and oil price worries. Trading environment as long term views remain a flip of the coin with a bias on the downside. Patience is the name of the game short term.