ONE EGG Scan for March 17th

Investors decide they like the global stimulus as a catalyst to buy on Monday. Still weak volume and breadth, but upside nonetheless. The FOMC is still at the top of the watch list and weak economic data still holds hope for some that the Fed will delay hiking interest rates. Plenty to watch as this all unfolds near term.

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% last¬†week. High risk trade that paid off… short side still in play. $43.80¬†with some calling for $30 level.

SOXX Рsemiconductors traded positive again for follow through on Monday offering a swing trade entry point. Need the leadership if the uptrend is going to continue.

YINN Рnoted the reversal setup last week and it did make move with nice follow through on Monday. Took entry for the trade on Pattern Trading Strategy.

IBB – biotech still showing positive signs of leadership. Nice gain on Monday to keep the trend alive and well.

CURE – healthcare joined the upside rally to run to new high. Healthcare still not giving up on leading the broad markets.

Treasury bond bounce continues which has some scratching their heads. Watch the Fed on this issue Wednesday.

Watch the¬†sentiment today as we start the week…

Current EGG Position:

Monday stated SOXX and FXI are of interest as we start the week and looking to trade either one with some follow through. Both gapped higher and watching how it unfolds missed as gapped added too much risk for current environment.

SOXL = $146.10 entry
YINN = $42 entry

Semi’s, China, Biotech, Healthcare and Financials show most promise… watch how the negative futures play out in early trading.