ONE EGG Scan for March 4th

Market looks, acts and feels toppy. Now is a good time to tighten stops on short term positions and look for the opportunity in the uncertainty. Leaders took a day off on Tuesday and futures aren’t looking to bright today. Running the scans for today there are some defined opportunities, but we have to proceed with caution.

Result for the Daily EGG Scan: 

Leadership from Tuesday…

TLT – downside risk back for Treasury bonds. TBT or TMV short trade surged. Cup and hangle pattern off the low in position.

SVXY – worries are gone relative to confidence looking forward and the short trade continues to work well for investors. VXX made move off the low on Tuesday… watch today may present trading opportunity.

RUSL – Russia quietly creeping higher. For those with a strong stomach for risk this looks ready to move upside.

UGA – gasoline speculation continues to feed on the issues facing refineries. This is a speculative trade, but there nonetheless.

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

Earnings from retailers are giving insight on the consumer and outlook for the economy. ANF, AEO, PETM and HRB all report this morning to set tone for the retail sector. (XRT)

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, some testing on Tuesday, and managing the stop to protect our gains.

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