ONE EGG Scan for March 16th

Uncertainty is the word, FOMC meeting is the challenge. Dealing with the interest rate issue isn’t anything new it just happens to be the new du jour.  Watching to see how we open following some selling on Friday. Still very choppy market without much in terms of conviction or direction currently.

Result for the Daily EGG Scan: 

Leadership outlook…

DTO – short oil trade broke through resistance at the $100 mark and created trade as we stated last week. It did not disappoint as oil fell more than 9% on the week. High risk trade that paid off… short side still in play. $44.50 with some calling for $30 level.

SOXX – semiconductors traded positive on a negative day Friday and show some signs of life. If it follows through look for upside trade back to the previous highs.

YINN – noted the reversal setup last week and it did make move, but still needs to follow through. on the watch list if the bounce follows through today? $42 entry looks good.

ERY – Short energy sector as the price of crude fails to hold any move on the upside. Short oil trade is driving this again as crude test $44.50 and previous lows. More downside still expected near term.

UUP – dollar has gone wild and still climbing as the speculation traders are pushing. Watch for a test of the move.

IBB – biotech still showing positive signs of leadership.

Treasury bond bounce Tuesday is worth watching as well. Made bounce support in place… FOMC meeting will determine the outcome.

Watch the sentiment today as we start the week…

Current EGG Position:

SOXX and FXI are of interest as we start the week and looking to trade either one with some follow through today.

SOXL = $146.10 entry
YINN = $42 entry