ONE EGG Scan for June 4th

Mixed bag for the markets as we continue to have the random sectors leading on the day while the balance of the market remains mixed and lacks direction. The semiconductors had taken on a leadership role and are testing lower the last two days. Oil moved higher on speculation and lower on reality. Small caps were lagging and now they are are playing catch up leading the broad sectors on Wednesday. It is like watching a game of tennis with an extra long volley in a doubles match. Remain patient is all we can do until there is some definable trend that is tradable.

Result for the Daily EGG Scan: 

Potential leadership results our┬áscans produced for today…

  • TNA – Small caps make solid move higher on Wednesday and that puts it in a new leadership role for the major indexes. $91.20 entry point… watch for test of the move to confirm and trade.
  • UWTI – crude jumps higher? Speculation? Absolutely. Wednesday brought speculation the other direction with some selling. Watching.
  • DGAZ – short natural gas back on the scan… watching.
  • EDZ – emerging markets continue to move lower… short trade still working for now. added more gains on the selling Monday.┬áStill inching higher.
  • RUSS – short side of Russia┬ábounces back as the price of crude decline back below the $60 mark. Just watching for now.
  • YCS – strong dollar sends yen lower. Nice confirmation on the break higher and still running to start the week. Stalling, but holding near the highs.
  • TMV – short treasury bond trade is back as the reversal losses steam and speculation on the Fed hiking interest rates returns. Nice follow through on Wednesday… rates are moving higher for now.
  • 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 after test on Wednesday. $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.┬áSelling returned on Wednesday and resumes the move higher.
  • 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. Consolidation at the high.
  • 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. $19.20 could trigger another entry point technically for the position.

Possible EGG Position:

This is clearly a traders market. This week is similar to last week… 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.