Nasdaq: -11.22… S&P: -10.71…
Well I’m not feeling as cozy as I was a week or two ago, so I’m hoping for the best as this market tries to figure itself out.
Many of Tuesday’s moves were a reversal of positions that were built up as the Federal Reserve put off raising interest rates. But now many investors expect the central bank will act by the end of the year. Expect more of this nonsense between now and December.
Markets have been on the central bankers teet for so long now that even the slightest murmuring of higher rates takes down the market.
I’m not sure earnings will be the catalyst that markets are looking for, but get ready, because they start fast and furious over the next week.
As rates edged higher today, those bond proxies tanked. Check the charts tonight of XLU, XLP, GLD, GDX, SLV, XME, XLB and IYR. The ten year note also popped 3.7% to a yield of 1.68%.
If you remember back in September when rates popped, the market tanked, so i would expect the same here if rates continue to tick higher.
I added BMO as a short today.
Here are some possible shorts that I have my eye on.
BID- is on our list, hasn’t triggered yet, but looking ready