ONE EGG Scan for May 26th

New week… same story in play. Uncertainty or worry is plaguing the major indexes, but the upside move in stocks and specific sectors is keeping trends in play. In the midst of confusion the markets rise? Looks to be the case. The VIX index remains near 12 and shows no real signs of investor concern. Thus, follow the trend it always knows… as the famous quote from Roosevelt goes, “when the horse dies… dismount.” until then keep riding.

Issues in Europe in play with Greece missing their debt payment and Spain’s elections. Watching the disruption or ignoring in the US markets.

Result for the Daily EGG Scan: 

Potential leadership results our scans produced for today…

  • YINN – China moves higher on positive data? Breakout and trade?
  • EWH – Hong Kong hits new higher and double bottom break on upside.
  • SOXL – Semi’s attempt to break through resistance and offer some leadership.
  • RUSL – Russia finally bounced back from the three days of selling. Doji on Friday?
  • TNA – Small caps make move through resistance triggering entry for trade, but stalled? Clear $91 would be important. Tested Friday?
  • EUO – short the euro trade worked a bottom reversal? follow through? Hit entry.
  • Start of the week should offer some opportunities.

Moves of interest trailing ten days:

  • BIB – biotech at resistance and break higher is of interest.
  • CURE – down trending channel? break through the upside a positive. stalling at high? Watching for continuation of upside and opportunity to add.
  • TECL – tech back near the highs and looking for upside continuation.
  • MIDU – midcap back at the highs and needs catalyst to the upside breakout.
  • YINN – reversal on test of the move higher? $62.50 break of interest for upside trade.
  • Slim pickings on the stall in the broad indexes.

Possible EGG Position:

Indexes made a move on the upside and were 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 (5/15) 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 begins. We have not gotten the upside pop on the move higher. Watching Tuesday and will determine if we take some risk off as this move sideways.

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.