ONE EGG Scan for June 23rd

Buying/Selling blamed on Greece? Really they have that much control over the global markets? It is news in the void of leadership and it creates volatility and choppy markets. I am not a fan of this environment for trading and we continue to watch for the trend to develop and determine direction near term. Without leadership the push back and forth remains the risk to assets.

Tuesday looking for some clarity in direction… if that comes from a resolution with Greece then we take what the market give.

Result for the Daily EGG Scan: 

Potential leadership results our¬†scans produced for today…

  • GREK – jumped 8.3% on the rumored resolution…. watching.
  • TMV – short treasury bonds rise again as yields rise 10 basis points.
  • BIB – biotech breaks from the current trading range leading the upside.
  • CURE – healtchare breaks higher as well clearing the current trading range.
  • DUST – short gold miners on the rise again as gold speculation dies for now.
  • TQQQ – NASDAQ 100 index made solid move to the upside to lead the major indexes. Watch the continued follow through.
  • TNA – Small caps make the break to new high and needs to take on the leadership role.
  • KRE – regional banks get big pop on upside move with jobs report strength. Consolidation at the highs. Testing with some volatility.
  • VNM – Vietnam break higher off double bottom… needs follow through on new push higher.¬†hitting some resistance at the $18.25 mark.
  • IHF – healthcare providers moved back to the previous highs and ready to continue the uptrend. Nice follow through on the upside.

Moves of interest trailing ten days:

  • INDL – India making good on the bottom reversal in place currently.
  • TNA – nice breakout on the upside to new high to follow through on the move higher.
  • FAS – financials are making headway on the upside as the money rotated into the sector on interest rate hikes. Positive for lending and bottom line.
  • BIB – biotech at resistance and break higher is of interest.¬†Nice break on the upside as the leader.
  • SVXY – short VIX trade has played out well.
  • TMV – short treasury bonds continues to play out on the Fed threat to raise rates. Playing out nicely on the upside. Tested lower¬†to end the week. Watch for resumption early in the week. Started on Monday upside again.
  • KRE – regional banks taking on leadership role for the broader markets. Nice follow through on upside move.
  • ERY – short energy trade continues to trend higher. Uncertainty about oil prices has the sector stalled. Take it for what it is.

Current EGG Position:

IWM was the watch for as the small caps have held up well in the midst of some selling in the broader indexes. Hit our entry at the $124.85 level and it followed up with move higher. Entry was $125.10. Stop $127.50. Cleared the high of $126.53 and made the break higher and looking for the upside move to continue. Raised stop.

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.