ONE EGG Scan for June 26th

Still no direction for investors as the market stumbles on the same old worries. Today is the end of the week and looking for more of the same with the exception of the Russell 2000 small cap index. It gets rebalanced today along with all the Russell indexes. Could spike trading volume on the day. If that is the excitement of the day we won’t worry too much. We will watch for what offers the best opportunities again on the day, but we remains cautious and patient.

YANG – Short China ETF is on watch list for EGG today.

Result for the Daily EGG Scan: 

Potential leadership results our scans produced for today…

  • BOIL – natural gas is back on the upside after testing lower. Watch to see if the upside follows through.  $46.90 entry of interest.
  • ERY – short energy is back on the upside was crude fades? Watch the $20.45 level to break high and possible trade.
  • RUSS – jumped 8% on the worries. Watching $33.20 on the upside as trade opportunity? Hit that level on Thursday, but manage the volatility.
  • 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.
  • CURE – healtchare breaks higher as well clearing the current trading range. Tested lower last two days.
  • TQQQ – NASDAQ 100 index made solid move to the upside to lead the major indexes. Watch the continued follow through to new highs. Tested last two days.
  • TNA – Small caps make the break to new high and needs to take on the leadership role. Tested last two days.
  • 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. Thanks to Supreme Court decision.
  • 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. Selling on Thursday?
  • 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. Selling Thursday?
  • TUR – Turkey is making a bottom reversal worth trading if it follows through. Tested on Thursday

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. Hit stop on Thursday with early selling.

Yang (short China) is of interest if we follow through on the reversal in the ETF. This would be a $67 target trade and if it goes it will happen quickly. Entry $62.35. Target $67. If gaps higher pass.

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.