ONE EGG Scan for May 27th

Sellers step in and dominate the activity on Tuesday. That shifts the daily scans to the downside trades showing up, but that does not mean they follow through. Now we determine if it is a one day event or is there reason for a reversal currently. Healthcare is a good example with CURE moving off the highs and in position to test near term support. If it holds and bounces not a reversal… breaks lower reversal in play on the downside move. Be patient an let this confirm as we start the trading day.

Issues in Europe in play with Greece missing their debt payment and Spain’s elections. Add renewed worries over the Fed hiking rates and we have to watch the disruption in the US markets. (IN PLAY on Tuesday!)

Result for the Daily EGG Scan: 

Potential leadership results our scans produced for today…

  • YINN – China moves higher on positive data? Breakout and trade? Held Tuesday.
  • EWH – Hong Kong hits new higher and double bottom break on upside. Held as well.
  • SOXL – Semi’s attempt to break through resistance and offer some leadership. Less selling that the other sectors. Positive for technology.
  • RUSS – short side of Russia in play with the move lower in oil prices and disruption geopolitically relative to Greece, Spain, and Emerging Markets.
  • EUO – short the euro trade worked a bottom reversal? follow through? Hit entry. Nice jump on Tuesday… raise your stops to protect the gain.
  • YCS – strong dollar send yen lower. Nice confirmation on the break higher.
  • ERY – short energy trade working on the follow through Tuesday.
  • UUP – dollar making moves on the upside causing disruption.

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.
  • 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.
  • SOXL – messy, but making money on the upside short term.
  • YCS – short yen on strong dollar working very well on the upside.

Possible EGG Position:

Raised stop to $95 into the open on Tuesday and this the exit points. Regrouping on the selling and see how today unfolds for follow through or one day sell off? Patience.

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.