Indecision Monday pushed stocks up slightly on the day, but nothing was settled in terms of direction short term. The scans show some negatives in the country ETFs and currency, but US stocks are holding steady, but not really moving higher either. This continues to beg the question… which way is the market heading? NO one can really answer that question with any certainty, but plenty will take an educated guess and make it sound like fact. I am still willing to watch and see how this unfolds going forward. Bias relative to the trend remains with the upside for now.
Result for the Daily EGG Scan:
Potential leadership results our scans produced for today…
- UWTI – crude jumps higher Friday? Speculation? Absolutely. Watching for some confirmation… XLE was negative with crude higher showing I am not the only one with disbelief about the move in crude… watch. No help on Monday, but then no selling either.
- EDZ – emerging markets continue to move lower… short trade still working for now. added more gains on the selling Monday.
- SOXL – Semi’s attempt to break through resistance and offer some leadership. Less selling that the other sectors. Positive for technology. Follows through with big upside move and trade opportunity. Holding the move and drifting higher.
- TNA – Small caps made nice move on Wednesday… no follow through only a consolidation pattern to watch. The rebalance of the Russell 2000 didn’t help matters… watching how today unfolds.
- RUSS – short side of Russia in play with the move lower in oil prices and disruption geopolitically relative to Greece, Spain, and Emerging Markets. Continued higher on and now faces the 50 DMA as resistance? Monday provided solid upside follow through on the move.
- YCS – strong dollar send yen lower. Nice confirmation on the break higher and still running to start the week.
- UUP – dollar making moves on the upside causing disruption. Testing the $25.50 level of resistance? Watching the dollar.
Moves of interest trailing ten days:
- DGAZ – short natural gas is running as the commodity seeks the previous lows.
- RUSS – ten day jump of 41% as the selling accelerates in the country index.
- EDZ – five day jump puts it in the top ten. 13% gain. short emerging markets.
- BIB – biotech at resistance and break higher is of interest.
- CURE – down trending channel? break through the upside a positive. stalling at high? Watching for continuation of upside and opportunity to add.
- SOXL – messy, but making money on the upside short term. Big follow through on the trade Wednesday and jumps to the top of the list. Held gains into the weekend…
- YCS – short yen on strong dollar working very well on the upside. Another move higher on Wednesday.
- TECL – technology jumped up the list with nice move and watching the new high opportunity despite the test lower on Friday.
- TQQQ – NASDAQ 100 winning from technology pushing the index higher. Tested lower bounced, sold into the close on Friday… looking for the bounce back.
- ERY – short energy trade has been slowing climbing and is up 9% the last ten days.
Possible EGG Position:
- TECL – $40 with test of the move is good entry point.
- BIB – $89 with test of the move on Wednesday for entry point.
- TMV – $32.20 short side trade on the move higher in interest rates.
This is clearly a traders market. Wednesday – Friday last week showed that it is not a friendly market for trends. The shortened holding periods makes risk more imperative to manage. Not convinced that either side has control of the direction. We are looking for trades only at this point and we will manage the positions more aggressively.