ONE EGG Scan for May 6th

As we stated Monday was not the greatest of moves and to proceed with caution… the selling on Tuesday reflected the downside risk of the current environment. The selling did nothing to alter the landscape either and we just move towards the future looking for clarity. The short side trades led the scans on Tuesday and we keep looking for the winner as defined by the break higher or lower. For now the definite course of action is defense and patience.

Result for the Daily EGG Scan:Ā 

Leadership results theĀ scan list produced for today…

  • SRS (short REITs), SOXS (short semiconductors), BIS (short biotech), SRTY (short russell 2000 index), and SQQQ (short NASDAQ 100) all set up the short side leadership on Tuesday.
  • GASL –Ā cup & handle… looking for confirmation.
  • TMV – another move higher as rates climb and bonds fall.
  • SLV – bounced, double bottom? still to soon.
  • GLD – bounced, but still no direction near term.

Moves of interest trailing ten days:

  • 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. Nice break higher.
  • 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. See how it responds to the late day selling in the laundry room.