Positive Day Helps the Upside Scans

Finally a day with a beginning to end positive move for stocks. The S&P 500 and Dow both set new highs. The small caps put in solid bounce off the bottom of support, and the commodities bounced of support levels as well. Running the scans tonight is starting to give a different view of what is taking place in the markets. First the daily winners were short natural gas ETFs, emerging markets, India, commodities, and global market specific ETFs. The five day scan is where I am focused currently for leaders to the upside breaking from the consolidation pattern set up the last six weeks.

  • KOLD or DGAZ leveraged short natural gas is leading over the trailing 5 and 10 day scan periods. $42.60 on KOLD is the break of the next resistance levels.
  • ERUS – Russia has moved off the lows on positive comments from Putin. Move above $18.64 would be breakout point for the ETF.
  • EEM – emerging markets breaks from the consolidation pattern and the leverage is version (EDC) is in the top performing for the trailing five days.
  • EPI – India gapped higher the last two trading days and looks optimistic short term.
  • DRN – leveraged Real Estate is the other leader. IYR is the non-leveraged version and is up nicely as well.

EGG Model Watch List: Posted EEM trade for Thusday. Gap over the entry and then tested lower and keep moving lower. Added partial position at 41.80 into the close today. We added to the position again on Friday as it stayed in the range and looked lazy. That changed on the gap open Monday and held the gain on the day of 1.7%. Wanted to add to our position today, but that was negated by the gap open. We will manage our position going forward.