ONE EGG Scan for March 5th

Positive start in store today… but, were we close is the bigger question. No catalyst in place and headlines full of worries. If that is the analyst and traders that are worried it’s an issue, if it just the talking heads and journalist worries forget about it. Take what the market offers and keep focused and disciplined in your moves.

Result for the Daily EGG Scan: 

Leadership outlook…

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 Wednesday, but that evaporated before the close. SVXY still moveint higher $69 target today.

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 it leads the sectors. three gap days higher in a row… what now? Bank some profit on this and tighten your stops.

XRT – tested lower on Wednesday, but still looking good for now.

Current EGG Position:

We hit our stop on IWM in the early selling on Wednesday. I looked at changing the stop to hold the position into the afternoon, but it really would have violated the discipline, obviously worked, but if you start bad habits they will bite you in the end. We retrench and look today for the next opportunity.

Biotech is of interest with the break higher. Going to see how today unfolds with nothing on the scan screaming opportunity today. Better to watch how it plays out and take the next opportunity.