ONE EGG Scan for June 8th

News remains the driver. The trends are being challenged in many sectors. The issues in Europe with Greece are still in play. Interest sensitive assets move lower on Fed fears. Jobs report seen as negative for stocks with Fed in position to hike rates. And the list of worries goes on and on. The market is always looking forward and by nature it finds worries. The challenge is a lack of clarity about growth in the US or global economies. That leads to speculation which sparks volatility which leads to psycho trading… And the hits just keep coming.

Starting the week with our continued tone of caution and willingness to watch and be patient. Remember hindsight is always 20/20 and there are always things we coulda, shoulda, or woulda done. Be patient and allow the risk arrow to favor you not the market.

Result for the Daily EGG Scan:Ā 

Potential leadership results ourĀ scans produced for today…

  • DGAZ – short natural gas back on the scan… watching. $7.50 entry? risk management is key if you add position. $7.60 was the number and the stop is $7.40.
  • EDZ – emerging markets continue to move lower… short trade still working for now. added more gains on the selling Monday.Ā Still inching higher. Broke support on EEM Thursday.
  • YCS – strong dollar sends yen lower. Nice confirmation on the break higher and still running Friday up more than 2%.
  • 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.
  • DUST – short gold miners back on the list with break above the $15.20 level. watch for opportunity.
  • UWTI – crude higher on Friday… still not willing to play with the yo-yo commodity.
  • KWEB – China internet stocks moving higher again and worth watching.
  • KRE – regional banks get big pop on upside move with jobs report strength.

Moves of interest trailing ten days:

  • DGAZ – short natural gas is running as the commodity seeks the previous lows.
  • 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.
  • TMV – short treasury bonds continues to play out on the Fed threat to raise rates.
  • KRE – regional banks taking on leadership role for the broader markets.

PossibleĀ EGG Position:

This is clearly a news driven market making trading a challenge. Swings trades are struggling to follow through and creating to many whips in and out. No trends or continuation of trends. Testing is the trend and it has extended into a sideways market. TheĀ week traded outĀ similar to last week… no direction near term. News is driving the day to day activity andĀ the insecurity is showing in investor activity.Ā The shortened holding periods makes risk more imperative to manage. Not convinced that either side has control of the direction.Ā Manage positions aggressively based on the current environment. No position in the EGG currently.