ONE EGG Scan for October 10th

The pain remains in the indexes day-to-day movement/volatility. Rewind back to scans for the selling on Tuesday and we have the same broad downside results. Ugly, ugly, ugly and uglier unless you are short. We were short, hit stops on Wednesday and now we are watching the downside return. As I continue to say and will until it is over… you cannot trade stupid! The lack of direction, other than on the intraday chart, keeps me on the sidelines relative to the EGG. It is not designed to day trade, but to find the momentum of the market and trade that. With that in mind below are the results of today’s moves.

Running the EGG Scans – First the daily winners/losers…

The stepped in from the open and took stocks lower and accelerated following the first hour and a half to support near the 1926 level. Thus….

Small caps (TZA) dumped back to the previous lows on the Russell 2000 index closing near the 1070 mark and well below the 1090 level it recaptured yesterday. Oversold and looking for buyers who will stick. Downside remains the trend and the trade if you have the conviction the index is going lower from here.

Volatility Index (VXX) jumped to 18.7 and a new high on the current trend lower in stocks. The close above 17.5 is key relative to the sellers owning control for now. 21.5 would be the next level of resistance and leaves more room for the anxiety to push the downside trend.

Gold Miners (DUST) gold continued with a modest gain, but the miners gave back half of the gain from Wednesday down 4.6%, DUST was up 14.1% as it is three time leveraged. Nice reversal again. Tough to trade the movement in the sector, but it is there for the bold.

Energy (ERY) expanded the downside again as crude oil touches below the $86 level on the day. The stronger dollar is exerting weakness into the sector overall.

Russia (RUSS) selling returns to Russia and the now testing the upside on the short ETF.

Financials (FAZ) downside leadership withe sector losing more than 2% on the day. Banks were the driver again on the downside today.

Other Sectors of Interest:

Crude Oil (DTO) was looking like it wanted to go higher, but reversed on Friday moving back below $90 barrel. Monday moved to $90.49? Volatility making it tough to trade. Tuesday moved to $88.82 again lower? Thursday $85.16. Patience as the downside plays out along with the volatility.

Current EGG:

The volatility is keeping the scans from building any momentum in key sectors. Based on tonight’s scans we are willing to watch and see how this unfolds for now. The whiplash from the movement isn’t worth the anxiety.

Table updated based on the last two days outcome to what we are watching.