ONE EGG Scan for January 9th

Thursday was a follow through day for the reversal and now it faces resistance, jobs report and earnings starting. Plenty of news events ahead to play havoc with the day-to-day market activity. Expect more volatility starting with today if the numbers are not good for jobs.

Futures are pointing lower today heading into the jobs report. I am still looking for some defined leadership from the broad markets. Watch how investors respond to the data and let the emotions work out in the first 30-60 minutes of trading today.

Sectors Worthy of Attention: 

Crude oil has been in a progressive downtrend hitting a low of $47 this week. The bounce on Wednesday closed with a doji. Could be get some upside relief in the stock 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. 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.

Financials have been lagging and looking for them to play catch up in the current move off the low and run back to the previous highs. FAS would be the ETF of choice to capture the move short term.

These are the set ups for Friday… We will post into the open today what if any trade we like.

FXI gapped above the entry prices and didn’t add the trade on Thursday. It is still on the watch list as an opportunity going forward.

Result for the Daily EGG Scan: 

UCO – entry $8.75.

SOXL – entry $133.65

FAS – entry $125.25

Markets are still playing the worry game as the uncertainty returned last week with oil prices dropping, economic data disappointing and the global markets showing more weakness. The bounce on Wednesday and Thursday was a positive start to a reversal. Needs validation on the move if it is to continue and the jobs report may be the catalyst on the day. Remember this is a trading environment currently… longer term outlook remains uncertain.