End of volatility? Yields continue to rise. Spy could crack.
Updated
Hello. Despite this weeks amazing rally, I believe it's too much too soon. The yields are continuing to rise and could be as high as 1.7% by late Monday/Tuesday. How could it affect the market? Some economists are predicting that a 2% yield on the 10 Year will result in a 20% correction in stocks. This is in line with the bearish megaphone that has formed. There's a possibility that we are approaching a peak. The rejection could take us quite close to the economists warning of -20%. 350 could happen which is around a 18% correction.
What do you think? Leave your comment below. I believe we have 1 more dip before truly breaking out of this. For now, I remain short and will load more puts should we try to push past 395 to reach 400. At 400, I will go all in on puts.
Currently holding puts for 390 strike by friday.
A circulating idea has been that we will have >2% yield by June.
Trade at your own risk.
What do you think? Leave your comment below. I believe we have 1 more dip before truly breaking out of this. For now, I remain short and will load more puts should we try to push past 395 to reach 400. At 400, I will go all in on puts.
Currently holding puts for 390 strike by friday.
A circulating idea has been that we will have >2% yield by June.
Trade at your own risk.
Note
Looks like we had a bit of a jump from JPOW/The Fed comments, but yields called them on it. Expecting much more volatility ahead. Cash is probably the safest position.Trade carefully. I am not an expert. However, I do believe we could drop to 3850 tomorrow with France now locking down.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.