ONE EGG Scan for March 3rd

Market continues to drift on the upside, but starting to show signs of fatigue setting in at the new highs. TheĀ NASDAQ hits 5000 as milestone and watching to see if it holds or tests the move this week. M&A activity rising as money on balance sheets is put to work or inflated stock prices being used. 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:Ā 

Leadership from Monday…

SOXL – semiconductors break higher with conviction finally to lead.

TLT – downside risk back for Treasury bonds. TBT or TMV short trade surged.

SVXY – worries are gone relative to confidence looking forward and the short trade continues to work well for investors. Trade continues to play out.

FAS – financials showing some signs of optimism on M&A activity… may be ready for next leg higher.

TAN – solar is running higher again as FSLR leads the sector.

Current EGG Position:

We own IWM on the break higher and the move higher has been slow and methodical versus exponential. Solid move higher on Monday and plenty to work towards going forward. ManagingĀ the stop to protect our gains.

Still looking for opportunitiesĀ in other sectors the move off the February lows is getting extended technically and we have to be cautious about our choices.