Market continues to drift on the upside, but starting to show signs of fatigue setting in at the new highs. The small test on Friday may see more developments as the week unfolds. We have to remain patient and continue to take what the market gives with a clear exit path marked out should things go wrong.
Result for the Daily EGG Scan:
Leadership from last week five day scan…
DGAZ – short natural gas was the clear leaders as the bottom fell out on supply data.
NUGT – gold miners were higher on the bounce off the low for gold. Looking for this to continue this week as a possible trade opportunity.
UGA – gasoline higher on strike rumors in the refineries and the draw down in supply. If strike is settled this goes away… trade on speculation plain and simple.
SVXY – worries are gone relative to confidence looking forward and the short trade continues to work well for investors.
EUO – short euro trade gained traction on the week as the dollar regains strength.
Current EGG Position:
We own IWM on the break higher and the move higher has been slow and methodical vers exponential. We could say that about all the major indexes at this point… we will be patient and see how it unfolds again today. Raised the stop to protect our gains.
Still looking for opportunities in this stalled state for the broad indexes… Still no clear leader as it keeps shifting day to day… patience.