ONE EGG Scan for June 9th

The selling is testing some key levels short term, but the VIX and downside volume is not overly aggressive. The Dow is the leader on the downside and has offered some short trades, but nothing overly aggressive on the downside at this point. There are plenty of headlines telling us how bad things are, but the charts are still hanging tough. Still willing to be patience, but Monday’s selling did shift the scans to the downside bias. Not convinced that is the best or least risk of the trades, but we will watch how to today unfolds for insight on direction near term.

Result for the Daily EGG Scan: 

Potential leadership results our scans produced for today…

  • UNG – jumped to establish a bottom reversal trade on Monday… watch. BOIL 2x leverage ETF for trading the commodity. $43 entry on upside move follow through and reversal.
  • EDZ – emerging markets continue to move lower… short trade still working for now. added more gains on the selling Monday. Pause, but still valid.
  • YCS – strong dollar sends yen lower. Nice confirmation on the break higher and still running Friday up more than 2%. Hit stop, but watching the test test lower.
  • SDOW – short DJI was a setup and entry hit last week as trade opportunity.
  • DUST – short gold miners back on the list with break above the $15.20 level. watch for opportunity. Testing the move higher.
  • KWEB – China internet stocks moving higher again and worth watching.
  • KRE – regional banks get big pop on upside move with jobs report strength.
  • WEAT – double bottom pattern for break higher setup.
  • SPXS – short trade setup on the S&P 500 index.

Moves of interest trailing ten days:

  • DGAZ – short natural gas is running as the commodity seeks the previous lows. Big bounce in UNG on Monday put pressure on the short trade and hit the stop.
  • EDZ – five day jump puts it in the top ten. 13% gain. short emerging markets. confirmed again with the move higher. Downside is still at risk short term.
  • 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.
  • SRS – Short REITS as interest sensitive assets still moving lower.

Possible 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. The week started out similar to last week… no direction near term. News is driving the day to day activity and the insecurity is showing in investor activity. The shortened holding periods makes risk more imperative to manage. Not convinced that either side has control of the direction. Manage positions aggressively based on the current environment. No position in the EGG currently.