ONE EGG Scan for March 11th

The sellers showed up on Tuesday… what happens today? Well it’s the Fed of course, or is it the dollar… maybe the economy? Whatever your choice it was nothing more than a justification to sell stocks. If everyone will stop chattering long enough to look at the data points… the economy is looking square in the face of 1.2 – 1.5% GDP for Q1! Slower growth is the greatest challenge and it comes from so many issues I don’t have time to discuss, but the wholesale inventories rising and sales declining since October are just the latest greatest data point to digest.

Thus… the leaders are on the downside over the last 3-5 trading days.

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.

YANG – China bear fund moving higher as economic data validates issue with the growth and interest rates rising. Move above the $11.40 mark is of interest as trade opportunity.

ERY – Short energy sector as the price of crude fails to hold any move on the upside. $75.30 target on XLE. Hit on Tuesday and could continue lower based on the price of oil and negative sentiment in the broad markets.

DTO – short oil trade is in position to break through resistance at the $100 mark. IF oil continues lower this will offer short term trade opportunity.

SDS – Short S&P 500 trade set up on the move lower Tuesday. $21.85 entry next level on move higher.

UUP – dollar continues higher gaining strength as global picture remains weak.

Treasury bond bounce Tuesday is worth watching as well. TMF is the way to trade the move higher.

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

Current EGG Position:

Looking for confirmation on the sell side today. SDS entry on test or follow through on the upside move. A test back to the $21.50 level and hold would off some interest. A continued move higher would be of interest for small swing trade. Either way the futures are pointing higher today and watching into the open today. $22 is max entry point either way… let the first thirty minutes play out.