ONE EGG Scan for June 5th

Sellers step in to erase the upside move from Wednesday… economic data, Greece and the IMF all contributed to the challenges on the day. With this being a news driven market environment… stocks moved lower. This is exactly what I have been pounding on the last month plus… no conviction, no clarity and too much emotions. Back to the drawing board on what we are watching as opportunities. Patience… jobs report out before the open and it could easily impact the direction despite what we think or believe from the data. Not a good day for an EGG hunt.

Result for the Daily EGG Scan: 

Potential leadership results our┬áscans produced for today…

  • As you would expect with the selling on Thursday the scan list shows plenty of downside ETFs as the leaders on the day. We will list them, but there are only a few that are in position to trade on the downside move.
  • RUSS – short side of Russia┬ábounces back as the price of crude decline back below the $60 mark. Just watching for now. Big follow through on Thursday for trade. Watch for test of the move…
  • DGAZ – short natural gas back on the scan… watching. $7.50 entry? risk management is key if you add position.
  • EDZ – emerging markets continue to move lower… short trade still working for now. added more gains on the selling Monday.┬áStill inching higher. Broke support on EEM Thursday.
  • 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.
  • ERY – short energy as the price of crude reverses hitting the stocks on the downside.
  • SDOW – short DJI was a setup we took today as trade opportunity.

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. Looks like buy back time?
  • EDZ – five day jump puts it in the top ten. 13% gain. short emerging markets. confirmed again with the move higher today.
  • BIB – biotech at resistance and break higher is of interest. Consolidation at the high.
  • 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 and Thursday was great example of the insecurity about this market.┬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.

Tough to buy on a Friday after a week like this has been for the markets. It will have to be a great setup to put money to work.