ONE EGG Scan for May 21st

The chatter in and around the market is confusion. The Fed minutes and interest rates, China and the US bantering over the South Sea, Unemployment rate and minimum wage, earnings, economy, and the great correction predictions. Puts some clarity around a stalled choppy market environment built for day trading. That is not our strategy here and it keeps us sitting on our hands. Watching the futures today and what unfolds relative to the reaction to China and US. Manage the stops on S&P 500 position.

Result for the Daily EGG Scan: 

Potential leadership results our┬áscans produced for today…

  • TMV – bonds return to their selling ways after only a one day bounce. Stalled???
  • YCS – yen falls in conjunction with the euro… break from the trading range. Dollar weaker overnight?
  • 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.
  • EUO – short the euro trade worked a bottom reversal? follow through?
  • Slow day and not much moved in terms of showing momentum. XBI was up 1.6% and shows nice pattern setup.

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? More decline is rally over? Sell half.
  • USLV – Silver is the upside leader. Big reversal on Tuesday with commodities. stalled
  • SPXL – break to new high and in position to run. stalled
  • EWO – uptrend remains in play… Tested Monday. $17.30 support.
  • CURE – down trending channel? break through the upside a positive.
  • TUR – remains a┬áleader in this category.
  • TNA – small caps attempting to recover leadership? Hit trade entry on Monday.
  • Rotation again in process as market looks for clarity.

Possible 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) Futures pointing lower need to manage expectations in first 30-60 minutes of trading today.

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.