ONE EGG Scan for June 3rd

More indecision on Tuesday has stocks flat and random sectors moving based on news. Crude oil (UCO) rose on speculation OPEC would contain production… not likely to happen as Saudi Arabia isn’t going to forfeit market share even if prices remain low.┬áRussia (RUSL) rose on the optimism in crude prices. Dollar (UUP) fell on speculation Greece was going to resolve the issues with the EU? Really? Declining dollar helped with oil prices… oil prices help Russia… oh how well this all fits together. Dollar helped emerging markets (EEM) bounce off near term low as well. This is a tough market for trading unless you can predict the insanity that is driving on any given day.

Still a market without direction… the news of the day drives the sector of the day and the leadership in the SOX (tested Tuesday), healthcare, biotech and consumer discretionary are being challenged currently. Watching how this unfolds day by day. Take what the market gives and remember it doesn’t care about what you think.

Result for the Daily EGG Scan: 

Potential leadership results our┬áscans 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. Got┬áhelp on Tuesday with solid move higher for the commodity.
  • EDZ – emerging markets continue to move lower… short trade still working for now. added more gains on the selling Monday. Tuesday sold slightly with the weaker dollar getting some credit.
  • 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.┬áSome selling on Tuesday and watching how that unfolds today.
  • RUSL – short side of Russia┬áhit stops and the upside show promise as oil price rose. The weaker dollar and speculation helped. Upside trade a possibility. $29 entry looks promising for trade.
  • YCS – strong dollar send yen lower. Nice confirmation on the break higher and still running to start the week.
  • TMV – short treasury bond trade is back as the reversal losses steam and speculation on the Fed hiking interest rates returns.
  • JNUG – junior gold miners bounce on weaker dollar. Reversal trade a possibility with upside move to follow through. Entry $23.85.
  • XME – metals and mining reversal off the current low and nice bounce trade. Need follow through on the move today. $27.85 entry.

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. Stop hit and the upside reversal had big move on the price of oil. RUSL trade set up the move.
  • 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 and jumps to the top of the list.┬áSome selling on Tuesday? Watching exit points.
  • YCS – short yen on strong dollar working very well on the upside. Another move higher on Wednesday.
  • ERY – short energy trade has been working. Watch the bounce in oil and tighten your stops accordingly on this position.

Possible EGG Position:

This is clearly a traders market. We start the week where we left off… no direction near term. News is driving the day to day activity.┬áThe 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.