ONE EGG Scan for March 31st

Buyers… some buyers show up to prop up the sectors on Monday. Low volume trading day, but positive nonetheless. End of the quarter… earnings start soon… economic data dump starts tomorrow… feels like we are drifting into the news to see if it is good or bad. Still patient as the market chops around on news, rumors, uncertainty and weak data points. Trading in this environment is great for day trading, but can make seasick otherwise. Be patient.

Result for the Daily EGG Scan: 

Leadership outlook…

Dollar holds support at $25.38 on UUP and bounced. Global issues have not changed and that leaves the dollar as reasonable default choice. I still believe looking forward the buck will bounce back, too much stimulus in play around the world. $25.75 level to clear moving higher (accomplished on Monday). Short euro trade back? EUO @ $26.73.

YINN – China stimulus pushed the country higher… watch this is a volatile trend, but it has moved up nicely short term.

RUSL – Russia is moving higher, but the volatility is a challenge for many. Upside in motion.

SOXL¬†– semiconductors dumped¬†last week and two day trade netted a gain, but the reversal on the intraday Thursday was exit point. Cleared $141 on Monday upside… if (big if) can gain some momentum upside trade possible. But, fails downside back in play.

DUST – short gold back on the map as metal struggle to hold positive move.

ERX – crude¬†has stalled again. $56.30 is of interest for trade on upside. The stocks are not responding to the rise in crude… many still see this as temporary move on speculation.

SLV –¬†GLD – downside is back as dollar strengthens and the speculation dies down. Short side is looking more attractive on break Monday. ZSL and GLL.

TMF Рtreasury bonds run higher on the lack of threat from the rate hikes. 50 DMA is in play currently and we hit our stops on the break last week. Follow the money. TBT entry in place with confirmed move above the $42.65 mark.

DBB Рbase metals jump on the speculation craze in commodities. Break above $15.40 from the trading range and base is of interest. No follow through on the speculation and has stalled for now. Need to move higher and some follow through higher is of interest for trade.

Possible EGG Position:

Today watching the short euro trade set up with EUO $26.70 entry. With the current choppy markets only add half a trade to deal with the risk. We will manage 1-10 day perspective.

Also looking at DUST $18.74 entry on follow through. Test of the move would give better entry point and we will watch to see how it unfolds.