ONE Egg Scan for June 24th

Another boring day in the markets. There was some selling, but not enough to disturb any trends or panic any investors. Thus, we keep the same heading and watch how it unfolds. The economic data was positive from the housing sector, but not much impact when it was all said and done.

Gold (GDX) and Silver (SIL) were back in the headlines as the miners continue to move higher on the day. The metal mining (XME) stocks were moving as well with the bump higher in copper (JJC). Base metals (DBB) were higher as well today.

We discussed the scans not showing rotation as much as broadening of breadth in this market last week and today we didn’t see much of any change overall. We just have to be patient and look for where the rising trends are accelerating.

Running the EGG Scans – First the daily winners…

  • Monday’s leaders – DGAZ (short natural gas) UNG broke support and the selling is gaining momentum. NUGT (gold miners still pushing higher), SVXY short volatility posted nice gain on the day, RUSL (Russia) making move higher? watching to see how it unfolds. AMJ (MLPs) making move to continue the uptrend.
  • Friday’s leaders – BIB (Biotech) broke from trading range, PJP (Pharma) continuation of move higher, TAN (Solar) continuation of uptrend, IEZ (Oil Services) acceleration in uptrend and Cooper (JJC) base metals moving off lows. Healthcare sector was primary leader on Friday and showing some renewed strength in the current move.
  • Thursday’s leaders – NUGT/GDX/GDXJ – (Gold Miners) gold jumps 3.5% and the miners 16%, USLV/SIL (Silver) up 13.8%,  TBT (Short Treasury bonds) up on yields rising, EWJ (Japan) nice follow through on continuation breakout, and EPU (Peru) breakout from consolidation,
  • Wednesday’s leaders – RUSL (Russia) bounced back 7.5%, NUGT (Gold Miners) jumped 7.6%, SVXY (volatility disappears again), EDC (Emerging Markets) Nice bounce, GREK (Greece) nice bounce off test in move higher. Honorable mention XLU (Utilities) nice bounce through resistance.
  • Tuesday”s leaders – TAN (Solar), PBW (Clean Energy), SVXY (short VIX), TNA (Small Caps) and FAS (Financials). Honorable mention KRE (Regional Banks) & KRE (Banks).
  • Monday’s leaders – UPW (Utilities), XBI (biotech), IHI (Medical Devices), TAN (Solar) and DIG (Energy). IHI benefited from the acquisition in the sector. TAN is EGG today.
  • Friday’s leaders – YINN (China), ERX (Energy), TAN (Solar), SOCL (Social Media), USLV (Silver) and RUSL (Russia).
  • Thursday’s leaders – UCO (Crude Oil), SIL (Silver miners), GDXJ (junior gold miners), TAN (solar power) UGAZ (natural gas), and DBE (energy).
  • Wednesday’s Leaders – RUSL (down 4%), SOCL (down 0.7%), PALL (down 4.5%), FCG (up 1.4%), JMF (down 1.3%) I stated they gave a different look, and that look didn’t last for more than one day.

Looking at the last couple of week of scans above we have to look for common ground and the sectors with the best upside or downside momentum. Energy, Alternative Energy, Precious Metals, Utilities, Healthcare and Short VIX remain the leaders.

EGG Model Watch List:

EGG Tracking… Stock recommendation follow up.

  1. BRCM – giving the best look relative to the semiconductors leadership. $31.15 entry last week was optimal looking back. Thus, a test of that level and hold, or a move through $31.50 on volume would be of interest for a EGG trade on individual stock level. Got the early move last Thursday (entry $31.50) and it followed through on Friday. News pushed the stock up 12% last week. Sold half at $35 and $34 stop on the balance. See how this plays out… the news wasn’t that earth shattering and willing to take my gift of gains. Nice bounce back towards the highs the balance of the week. Raise stop to $37.75 on balance of shares. Topping and volume falling back to normal tighter stops and watching. HIT STOP and locked in gains on the trade.

Current EGG:

TAN is the Egg Model at $42.30. Solid move higher on Tuesday and followed by some testing and closed higher on Friday. The interest in the sector invited money short term. The bounce off support near the $43.70 mark was of interest and the level we watch going into this week of trading. Held our positions and watching to see if we need to lessen our exposure Monday. Down 1% today and looking at taking an exit at $44.15 if we don’t show some positive signs into the start of the trading day.