ONE EGG Scan for June 29th

Markets as a whole continue to lack direction. Each attempt at leadership finds bigger worries to override the moves. Last week end with the markets testing the previous moves to new highs. The clarity issue is in full bloom. News is the driver and this week invites plenty… end of the quarter and the month… more data on the way. Jobs, manufacturing, services, sales, etc. all on tap. This could get interesting to see which hold move weight for investors; the US economic data or the outcome of Greece? The Fed hiking interest rates or dollar strengthening against the euro on Greek default? Fun for all and it starts first thing Monday with the imposed deadline for Greece on the debt deal with the EU.

Result for the Daily EGG Scan: 

Potential leadership results our¬†scans produced for today…

  • YANG – short China… this was the EGG on Friday, but the big gap was a pass on the day. We look to Monday for a better entry point.
  • ERY – short energy is back on the upside was crude fades? Watch the $20.45 level to break high and possible trade. Hit the entry and retraced on Friday… still like the downside play for energy short term.
  • RUSS – jumped 8% on the worries. Watching $33.20 on the upside as trade opportunity? Hit that level on Thursday, but manage the volatility.
  • TMV – short treasury bonds rise again as yields rise¬†again. Bounce in bond on worries… watching.
  • 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.
  • EDZ – short emerging markets is back on the table with bottom reversal last two days. 31.75 possible trade entry point.
  • DBA – nice break to the upside as agg commodities start moving upside?

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. Consolidating near the high… look for continuation of the move.
  • TNA – nice breakout on the upside to new high to follow through on the move higher. Tested last week… need follow through.
  • 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. Tested, but holding the uptrend.
  • BIB – biotech at resistance and break higher is of interest.¬†Nice break on the upside, but testing again.
  • TMV – short treasury bonds continues to play out on the Fed threat to raise rates. Playing out nicely on the upside.¬†Resumed upside move on rates ticking higher.
  • KRE – regional banks taking on leadership role for the broader markets. Nice follow through on upside move.¬†Testing and need follow through
  • TUR – Turkey is making a bottom reversal worth trading if it follows through. Tested¬†to end the week.
  • DUST – short gold miners is back to trending higher… $17.30 of interest for entry.

Current EGG Position:

Gap open and moved right to the target on Friday. Now we watch to see how it unfolds to start the week, but it was an interesting move for China on the downside.

To start the week too many big question marks with Greece and the geopolitical fallout from the decision. Watching how Monday unfolds, but the move lower in tech has my interest. Does SOXX, IGV, IGN, FDN and SOCL bounce back? If not, the downside opportunities get interesting across the US market sectors.

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