ONE EGG Scan for March 10th

Monday showed some interest from the buyers in the large cap stocks, but the NASDAQ was left out. This reversed some of the selling in those stocks from Friday, but without the NASDAQ participation the market will struggle to keep the upside momentum. This is something to watch moving forward this week. Leading sector on Monday was Industrials… but then it was also down to support. Still watching as the market returns to its choppy way of uncertainty.

Result for the Daily EGG Scan: 

Leadership outlook…

DUST – gold miners fall as GLD tests the $111 support. Strong dollar and rising rates don’t help gold and thus the reaction from the miners.

DGAZ – short natural gas was big winner on Monday as the commodity fell back near the $13.60 support on UNG. Demand still now showing up in the data and sellers keep selling into any type of bounce.

ERY – Short energy sector as the price of crude fails to hold any move on the upside. $75.30 target on XLE.

KBE – nice move higher as banks are the benefactor on the higher interest rates rumors from the Fed. I am not sure if I buy into the sustainability of the move, but trading the rumor has worked.

KRE – regional banks are the same as the large banks above.

SPY and DIA bounced off key support levels and worth watching how they unfold in trading today.

Some short momentum in sectors worth our attention, but need to be patient and gain some clarity near term on direction.

Current EGG Position:

Downside isn’t out of the realm of possibilities, but we still need to be patient for this to play out.