ONE EGG Scan for June 25th

Greece is still on the mind of investors as the offer remains unacceptable. Mixed economic data again in the US, but housing is getting the attention on the improved data and Lennar earnings. There was selling across the indexes and some nerves frayed. How does this unfold? That is truly the million dollar question. Looking to be patient as the morning develops and what direction the indexes will take on relative nerves on the downside risk or optimism about the upside opportunity.

Thursday 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…

  • RUSS – jumped 8% on the worries. Watching $33.20 on the upside as trade opportunity?
  • GREK – jumped 10% on the rumored resolution…. watching as selling showed up on the non-resolution news.
  • TMV – short treasury bonds rise again as yields rise¬†again. Bounce in bond on worries… watching.
  • BIB – biotech breaks from the current trading range leading the upside. Tested lower Wednesday.
  • CURE – healtchare breaks higher as well clearing the current trading range. Tested lower on Wednesday.
  • TQQQ – NASDAQ 100 index made solid move to the upside to lead the major indexes. Watch the continued follow through to new highs. Tested Wednesday
  • TNA – Small caps make the break to new high and needs to take on the leadership role. Tested Wednesday.
  • KRE – regional banks get big pop on upside move with jobs report strength. Consolidation at the highs. Testing with some volatility.
  • IHF – healthcare providers moved back to the previous highs and ready to continue the uptrend. Nice follow through on the upside. Tested Wednesday
  • UWTI – Crude is back on the list Tuesday with the push above $61 a barrel. Tested Wednesday
  • ITB – homebuilders attempting to follow through on positive outlook.

Moves of interest trailing ten days: No changes with the downside activity on Wednesday.

  • 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.
  • TUR – Turkey is making a bottom reversal worth trading if it follows through.

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 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 the current environment.