A quick review of what happened today. First off tlt clearly broke down and now barely above 162. It may bounce from here but in all likelihood it will drop some more. I intend to short bonds by either buying tbt inverse fund or tlt puts. The latter will be more aggressive if I see tlt unable to muster a bounce in the next day or two.
Since bonds are weak it should be bullish for stocks. However spy struggle to stay positive all day and ended in a crash close from day’s open at 285ish and closing around 283ish. Tech stocks is what’s holding the markets up while most other sectors are weak. The longer tech holds the markets up the weaker it is getting. However one rally for all sectors maybe able to must the next leg up for stocks since not many are running higher currently.
Another interesting item to note is gold also went lower for the day. Quite literally a risk off kind of day today. The trade volume was low so likely this pullback is without convection. Except for bonds where it drop n higher volume.
What next?
Spy is within a range between 270 and 295 for the past month. A direction Of this rice movement will come soon. I rather wait for confirmation on direction before investing in spy. On the must trade though is tlt where I do see bonds likely to continue to drop.
