ONE EGG Scan for March 25th

Markets are testing the move higher… plain and simple. How it unfolds now is a matter of willpower from the buyers or disbelief from the sellers. Short term market movement is just a battle of beliefs and the strongest beliefs result in short term trends. Facts create long term trends. The futures are flat again today as we head towards the start of trading day… and we will see what unfolds.

Result for the Daily EGG Scan:Ā 

Leadership outlook…

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. 50 DMA is my support point for the dollar (UUP).

SLV – silver is moving higher with the 50 DMA as support currently. Gold has joined the move as the dollar has declined short term. Take it for what it is with a tight stop to protect the reversal. GLD, SIL, GDX all moving higher.

RUSL – Russia moving again as the bottom reversal is holding and making upside progress. $22.20 looks positive for trade entry.

UCO – crude oil wants to bounce on speculation? Does the trade unfold? $6.80 level of interest as trade setup. That was the close last night.

TMF – treasury bonds run higher on the lack of threat for now from the rate hikes. How far do they run? StalledĀ for four days and now rising again? 50 DMA is support or stop how ever you see it currently… it is a stop for me.

EDC – emerging markets above $24 looks positive on the bounce (‘V’ bottom) trade.

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? My post from yesterday gives the answer no for now, but watching a few more days.

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. We are watching it test lower $164.22 is support to watch…

YINN –Ā noted the reversal setup last week and it did make moveĀ with nice follow through on upside. 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. News is pointing to negative, but give it some room for volatility… upside bias is still in play.

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.

Russia (RUSL) is of interest today for a 1/2 size position trade on the break through short term resistance. Dollar, oil and geopolitics at work. Manage the risk. $22.20 entry, don’t chase if gap open.