Momentum from the FOMC waning as investors look for the next story line to attach to. Crude oil is getting headlines as the dollar tumbles from the current highs. Investable? Not from my view. Trades for 1-15 days maybe, if you are willing to take the risk. Watching for some clear rotation signs in stocks that doesn’t have a tag line along with that is pure speculation. Europe is still the most interesting and sustainable story currently.
Result for the Daily EGG Scan:
Dollar dump in progress… does it last or is this some house cleaning from the over speculative trades at the top. Watch for the buck to bounce back, too much stimulus in play around the world.
SLV – silver is moving higher with gold on the move in the dollar. Take it for what it is with a tight stop to protect the reversal. GLD, SIL, GDX all moving higher.
DBB – base metals jump on the speculation craze in commodities. Break above $15.40 from the trading range and base is of interest. How does it follow through? Sustainable?
UCO – crude oil wants to bounce on speculation? Does the trade unfold? $6.80 level of interest as trade setup. UGA is showing signs of moving higher again.
BIB – biotech remains the primary leadership of the market currently. Plenty of talk about the valuations and overbought techincals as it takes some off the top. Watch.
TMF – treasury bonds run on the lack of threat for now from the rate hikes. How far do they run? Stalled and watching to lock in short term gains.
YINN – noted the reversal setup last week and it did make move with nice follow through on Monday. Big move on the FOMC meeting. Took entry for the trade on Pattern Trading Strategy. Raise stop (50 DMA) and manage risk on trade. Nice consolidation in place.
Global — EPOL $24 breakout? EWP ready to break from similar bottom base? EWL broke higher.
Current EGG Position:
Watching several sectors to hold the moves and break higher. Europe (IEV), China (YINN) and Semiconductors (SOXX) are candidates as well as the leveraged versions of each. Watching how the morning unfolds relative to the afternoon selling and commodities/dollar relationship.