ONE EGG Scan for May 4th

The bounce on Friday puts the uncertainty squarely in play again. More rotation as money shifts from small caps and bonds to new homes. The large cap (SP 500 and Dow) bounced along with some of the large cap technology stocks in the internet retail space. Plenty to watch and evaluate as we start the new week and month of trading. Economic data and earnings will drive activity this week.

Result for the Daily EGG Scan: 

Leadership results of¬†scan list produced…

  • Reversals on the selling Friday? Creates indecision on the direction again.
  • UWTI – crude makes move higher, entry $3.50. (hit entry on Thursday)
  • TZA – short small caps on the big drop last two days. has been building weakness.
  • SRS – short REITs stalled, but accelerated again on the interest rate worries.
  • DBB – base metals continued leading higher.
  • SPY, DIA, QQQ all bounced — watching to see how they start the week.
  • TMV – added as yields continue to rise.
  • EWI – Italy breaking from consolidation.

Moves of interest trailing ten days:

  • GREK – broke higher from the¬†bottoming pattern. entry $11.75. Stop same now as it moved higher.
  • GASL – natural gas attempting another move higher (cup & handle pattern)
  • XES – oil and gas equipment breaking higher.
  • UCO – crude jumping higher again.¬†double bottom pattern.
  • DZZ – short gold after two big days of selling. Watching Fed on this.
  • TMV – short Treasury bonds. gap higher¬†and follow through Friday.
  • GDXJ – basing trading range breakout $25.
  • BRZU – testing breakout at $7.75.

YINN – China is still a leader on the scans, still volatile, but stalled at the highs. Watching how today unfolds. Showing some fatigue at the highs. Tight stops if you own it and see how it unfolds. Stop $64

RUSL – Russia recovered from the big sell off April 17th. Upside is still in play, but the volatility is back on the worries. Trading sideways. Entry $32.10, Target $36.80. Fatigue setting in or resting to move higher? Watch. Stop $30.50.

ERX – Energy is trying to push higher, but the volatility had kept¬†crude oil¬†in check until Wednesday’s inventory report pushed crude higher. Trend off the March low still in play. $66 the target hit on the trade (booked some profit).¬†$64 stop in place. Watch.

Possible EGG Position:

Watching for help on Monday. Upside or downside has to take on a leadership role. The chop only muddies the water relative to the scans and opportunities. We will be patient for now.