One Egg Scan for January 22nd

Today it is all about the ECB…. good news and the markets react positive. Bad news and back to testing the current lows. One of the key habits to good trading is not to gamble. Putting money to work in expectations of what a country will do impact long term economics… simply put is gambling. We will watch, listen, read and digest how to best benefit from this move at all. My notes will cover this tomorrow morning in detail… stay tuned.

Sectors Worthy of Attention: 

Gold miners have moved higher on gold prices moving higher. Today they are trading lower in expectation of the ECB providing stimulus. Hedge your positions and let this unfold. I still like the upside for gold near term. Patience as it plays out.

SPY needs to clear the $204.20 level on the upside to follow through on the bounce or a break below the 198.50 mark would invite the short side trade lower.

QLD needs to clear the $135.40 level on the upside to follow through on the bounce or break below the $127.15 mark to invite the short side trade on a move lower.

Result for the Daily EGG Scan: 

TMF – treasury bonds continued move higher on yields moving lower. Watching for retraction or move lower on good news in stocks. TBT would offer a swing trade on the move.

XLE – bounced off the lows. Oil bounced off the lows. Need to follow through on upside┬áshort term. Setting up for short term trade along with crude oil, UCO.

XLK – technology is leading the bounce off the lows and good news could spring it higher short term.

Markets are still playing the worry game as the uncertainty┬ácomes from new sources, but the ECB may change that song… at least for a couple of days.

THRUSDAY: Positive open assuming all goes well with the ECB. This puts IEV on our list of potential short term holding in the EGG.