ONE EGG Scan for March 6th

Jobs report to start the day, but the real story will be in the afternoon trading. Can the market hold the gains or do we test further? What catalyst will the jobs offer, if any? We bring another week of trading to an end, but it will be one filled with interest for me relative to the strength and/or catalyst offered today. Patience is key.

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.

TAN – solar is running higher again as it leads the sectors. four gap days higher in a row… what now? Bank some profit on this and tighten your stops.

BIB – biotech off and running again the leadership remains in the sector. Tighten your stops and see how far it goes.

ERUS – Russia in a tight wedge or consolidation and could follow through on the upside as buyers look ready to push back into the country. RUSL is leveraged trade.

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

Current EGG Position:

We hit our stop on IWM in the early selling on Wednesday. It bounced in early trading, but never really gave re-entry signal worthy of the risk.

Biotech is of interest with the break higher. Going to see how today unfolds with nothing on the scan screaming opportunity today…. again. Better to watch how it plays out and take the next opportunity. Friday’s are tough especially with news on tap that is potentially market moving.