ONE EGG Scan for May 22nd

As we prepare for the long weekend… packing the coolers and filling up the boat there is still trading today! I know, set your stops and hit the road. That may well be the case today. Early trading will be the most active and this it is likely to drop to nothing as many head for the beach to relax and remember those who gave so much for the freedom we all enjoy. I want to personally thanks everyone who had a part in our freedom.

Looking for a relaxed day without much happening negative or positive.

Result for the Daily EGG Scan: 

Potential leadership results our scans produced for today…

  • UWTI – crude runs higher and could start another upside run.
  • IEZ – bounced on move in crude. reversal $52.50 level to watch upside.
  • RUSL – Russia finally bounced back from the three days of selling.
  • 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, but stalled? Clear $91 would be important.
  • SOXL – Semi’s are looking better and hit entry as well for trade, but also stalled.
  • EUO – short the euro trade worked a bottom reversal? follow through?
  • Expecting another slow day and not much moved in terms of showing momentum.

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? Sell half $2.75. Small gain… watch today.
  • USLV – Silver is the upside leader. Big reversal on Tuesday with commodities. stalled, but good regain traction.
  • 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. stalling at high
  • TUR – remains a leader in this category. Hit resistance at the 200 DMA testing.
  • Rotation again in process as market looks for clarity. Some topping patterns setting up as well… proceed with caution.

Possible EGG Position:

Indexes made a solid move on the upside and in good position to follow through, but have stalled the last few days. The SPY move is worth trading on upside follow through with SPXL. Added Friday (3/15) SPXL entry at $95.80 and stop near the $94 mark and a target of $102 on follow through break higher. (SEE TABLE) Watch the volume and volatility as this week comes to close. We have not gotten the upside pop on the move higher and we will look to deal with this early next week assuming today holds steady.

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.