ONE EGG Scan for July 2nd

New quarter starts off positive, but still have issues to contend with going forward. The swings up and down are not leaving much room or confidence to take on trades in this environment. Managing the risk of the move short term.

This is the final trading day of the week and willing to be more cautious than adventurous with the Greece vote on Sunday. Watching and scanning for the risk/reward that works currently.

On the daily scan seeing where money is going  with short term perspective. Longer scans still looking for the leaders to resume or the sellers to rise up. Patience is still the biggest trade of all.

Result for the Daily EGG Scan: 

Potential leadership results our scans produced for today…

  • SVXY – short VIX trade set up on Wednesday.
  • YANG – short China… this was the EGG on Friday, but the big gap was a pass on the day. We look to Monday for a better entry point. Gapped again and shows the downside risk in the country. Tested on Tuesday, resumed on Wednesday, and the downside momentum is still in play… watching today.
  • ERY – short energy is back on the upside with crude selling to the bottom of the range. Watch the $20.45 level to break high and possible trade. Hit the entry and retraced on Friday… Followed through on Monday and accelerated on Wednesday. Stops at the $20.50 mark.
  • TLT – Treasury bonds jumped on the decline in yields… temporary my view… still like the downside and this move gives better entry points on TMV or TBT trades. Put the trade in the short side in motion today if follows through on the selling.
  • DBA – nice break to the upside as agg commodities start moving upside? another follow through day on Tuesday.
  • SPXS – Short S&P 500 index showed on list with the selling below first level support on Monday. Still setting up currently.
  • SDOW – Short Dow Jones Industrial – showed on list with the selling below support and key moving averages. Watching for confirm.

Moves of interest trailing ten days: Big rotation in place near term.

  • DBA – jumped to the top of the list as other leaders lose their gains. JJG leading.
  • REK – short real estate. negative for awhile and continues to show weakness.
  • WEAT – wheat is running higher and created short term opportunity with move higher.
  • SOXS – short relative to the semiconductors selling lower. $48 entry for adding to the position worth watching.
  • INDL – India making another attempt to break higher. $20.75 entry point or speculation for lower entry.
  • DUST – short gold miners continues to show interest on upside. Gold back at $1172 per ounce…broke support and miners sell lower.
  • TECS – short side of technology showing some positive… watching for follow through.

Current EGG Position:

Downside risk is still in place as investors decide which side offers the better opportunity to trend near term. Still looking at the scan result for direction and we continue to see high risk opportunities, but prefer to be patient for the near term and let it all unfold.

This is clearly remains a news driven market which making trading a challenge. It has been challenging to hold trades and let them develop, but we have hit new highs on the NASDAQ and some leadership is showing in Financials, Healthcare and Consumer Discretionary sectors. We are essentially in an extended sideways market that is not attempting to break higher. News is driving the day to day activity. The shortened holding periods makes risk more imperative to manage. Not convinced that either side has control of the direction. Manage positions aggressively based on risk and discipline.