ONE EGG Scan for May 20th

Mixed day with commodities keeping the broad markets in check. The dollar jumped on news about ECB and QE action. Question is sustainability of the move in the dollar? Watching to see how the news plays out near term. This is one of those items that has an impact on the news, but could well fizzle. The dollar index was higher overnight, but has settled in as we approach the opening in the US. Fast money could show some rotation today as well. Letting this all unfold and understanding this is a trading market with little follow through on moves up or down short term. Patience today… please.

Result for the Daily EGG Scan:Ā 

Potential leadership results theĀ scans produced for today…

  • TMV – bonds return to their selling ways after only a one day bounce.
  • YCS – yen falls in conjunction with the euro… break from the trading range.
  • JO – coffee is working on a bottom reversal and made nice move higher Monday? Follow through anyone?
  • SVXY – VIX index continues to decline break of the 12 mark get very interesting for stocks moving forward.
  • TNA – Small caps make move through resistance triggering entry for trade.
  • SOXL – Semi’s are looking better and hit entry as well for trade.
  • EWH – Hong Kong gapped higher and looking to continue the previous uptrend. Let this unfold short term. Break from the consolidation pattern is the key short term.
  • TUR – range breakout off lows? nice upside follow through.
  • EUO – short the euro trade worked a bottom reversal? follow through?
  • ITB – bumped higher on housing starts. Watching for follow through?

Moves of interest trailing ten days:

  • UGAZ – Natural gas breaking from the trading range and setting up opportunity short term. Entry $2.55. Stop $2.55?
  • USLV – Silver is the upside leader. Big reversal on Tuesday with commodities.
  • SPXL – break to new high and in position to run.
  • RUSL –Ā uptrend still in play, big test higher… watching. Tested Monday. Fell Tuesday?
  • EWO – uptrend remains in play… Tested Monday. $17.30 support on Tuesday.
  • CURE – down trending channel? break through the upside a positive.
  • TUR – remains aĀ leader in this category.
  • TNA – small caps attempting to recover leadership? Hit trade entry on Monday.

PossibleĀ EGG Position:

Indexes make a solid move on the upside and in good position to follow through. The SPY move is worth trading on follow through with SPXL. Added Friday the SPXL entry at $95.80 and stop near the $94 mark and a target of $102 on follow through break higher. (SEE TABLE)

This is clearly a traders market. That shortens the holding periods and makes risk more imperative to manage. Not convinced that either side has control of the direction. We are looking for trades only at this point and we will manage the positions more aggressively.