ONE EGG Scan for June 10th

Tested lower, found some buyers, failed to confirm the reversal on the day. The bounce was good enough for me to lean towards a reversal on this short term move on the downside. Neither side, as we have discussed many times, wants to exert control. Both the buyers and the sellers lack confidence either is on firm footing to push their case. Thus, we trade in circles based on the news of the week. This week is centered on interest rate hikes and demise of Greece in the EU. Neither is really new news, it is just the news of the week. Today looking for the upside reversal and that could offer a trade in the small caps with TNA. Watching to see how it sets up in early trading and take it from there.

Result for the Daily EGG Scan: 

Potential leadership results our¬†scans produced for today…

  • UNG – jumped to establish a bottom reversal trade on Monday… watch. BOIL 2x leverage ETF for trading the commodity. $43 entry on upside move follow through and reversal. Nice pop on Tuesday to add to the reversal. Manage your exits.
  • UCO – crude made move higher again? Watch the volatility of this move.
  • EDZ – emerging markets continue to move lower… short trade still working for now. added more gains on the selling Monday.¬†Pause, but still valid. Hitting resistance… watch and manage your exit point.
  • SDOW – short DJI was a setup and entry hit last week¬†as trade opportunity. Watch stop and lock in¬†short gain if rallies today.
  • DUST – short gold miners back on the list with break above the $15.20 level. watch for opportunity. Testing the move higher. Followed through nicely.
  • KWEB – China internet stocks moving higher again and worth watching.
  • KRE – regional banks get big pop on upside move with jobs report strength.
  • WEAT – double bottom pattern for break higher setup.
  • FXP – short China trade showing up on the radar… watch for entry on break of support.
  • JO – coffee moving higher and caught on the scan last couple of days?

Moves of interest trailing ten days:

  • EDZ – five day jump puts it in the top ten. 13% gain. short emerging markets. confirmed again with the move higher. Downside is still at risk short term.Stops managed as this hits resistance of the 200 DMA.
  • BIB – biotech at resistance and break higher is of interest. Consolidation at the high.
  • YCS – short yen on strong dollar working very well on the upside.¬†Testing near term on dollar… $94.50 stop and let it go.
  • ERY – short energy trade has been working. Watch the bounce in oil and tighten your stops accordingly on this position. $19.20 could trigger another entry point technically for the position. Tested and offered if you were willing to trade.
  • TMV – short treasury bonds continues to play out on the Fed threat to raise rates. Playing out nicely on the upside.
  • KRE – regional banks taking on leadership role for the broader markets. Nice follow through on upside move.
  • SRS – Short REITS as interest sensitive assets still moving lower. Raise your stops on risk of this playing out short term.

Possible EGG Position:

This is clearly a news driven market making trading a challenge. Swings trades are struggling to follow through and creating to many whips in and out. No trends or continuation of trends. Testing is the trend and it has extended into a sideways market. The¬†week started¬†out¬†similar to last week… no direction near term. News is driving the day to day activity and¬†the insecurity is showing in investor 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 the current environment.

IWM is the watch for today as the small caps have held up well in the midst of some selling in the broader indexes. Look for entry at the $124.85 level on the day. Give it some breathing room at the opening half hour. Don’t chase if it moves quickly or gaps open. We are still in questionable market cycle.