ONE EGG Scan for May 5th

Not the greatest of moves on the upside Monday, but a move nonetheless. Lower volume, financials and utilities were the leaders, banks find some buyers, economic news better and hope springs eternal. It is just a gut feeling, but the market lacked conviction on a day that should have given confidence for buying. We proceed with caution and still looking for the leadership and confidence to emerge if the market is to break from the current range of trading.

Result for the Daily EGG Scan:Ā 

Leadership results theĀ scan list produced for today…

  • GDXJ – gold miners were the top four positions one scan we ran last night. This is the second attempt to break higher. $25.10 level to hold.
  • GASL –Ā cup & handle… looking for confirmation.
  • TMV – another move higher as rates climb and bonds fall.
  • FAS – financials at top of range… breakout? $127.40 level to watch.
  • SPY, DIA, QQQ all bounced — watching to see how they move now.
  • EWI – Italy breaking from consolidation.
  • EEM – bounced at support and watching.
  • SLV – bounced, double bottom? still to soon.
  • GLD – bounced, but still no direction near term.

Moves of interest trailing ten days:

  • GREK – broke higher from theĀ bottoming pattern. entry $11.75. Stop same now as it moved higher. Sold 4.4% on Monday? Watching.
  • GASL – natural gas attempting another move higher (cup & handle pattern)
  • XES – oil and gas equipment breaking higher. $30.23 level to clear.
  • UCO – crude jumping higher again.Ā double bottom pattern.
  • TMV – short Treasury bonds. gap higherĀ and follow through Friday.
  • GDXJ – basing trading range breakout $25.
  • BRZU – testing breakout at $7.75.
  • UWTI – crude makes move higher, entry $3.50. (hit entry on Thursday)
  • DBB – base metals continued leading higher.
  • YINN –Ā China still in consolidation mode.
  • RUSL – Trading sideways. Entry $32.10, Target $36.80. Fatigue setting in or resting to move higher? Watch. Stop $30.50.
  • ERX – Energy is trying to push higher, $66 the target hit on the trade (booked some profit).Ā $64 stop in place. Watch.

PossibleĀ EGG Position:

No clear conviction, momentum is fleeting, and risk remains too high. Leadership is the greatest need for the broad indexes. News is driving direction and that doesn’t fit our strategy or risk tolerance. Patience.