Please enable javascript in your browser to view this site!

Treasury yields start to lift with USD, as Gold falters- GDX should undeperform

Mild pullback from early highs and pattern overall still very tough to like here with strong resistance near 2160-1 in SPX cash and 2155 for S&P futures which aligns with a downtrend from last September.  Some meaningful movement in Treasury yields back to multi-day highs today and seeing some steepening attempts across the board with 10yr back up to 1.77 area while 30yr above 2.52.   A few things are happening today that are meaningful sector-wise, as Gold stocks have begun to rollover, along with some of the REITS and Utilities which would make sense if yields start to really strengthen.  This is more evident in the US than Germany  as bund yields still hovering near 0 and well off highs from the other week, yield wise-   But yields seem to be stabilizing globally, and US Dollar index turned back to positive about 2 hrs ago with Precious metals showing their first evidence of turning down-  in the near-term 2140 on the downside is important while 2148 on the upside, but can't rule out a move to 2155 given today's move if prices close up near today's highs- Some shorts to consider by sector:  Materials- GDX, NEM, OI, IP.  Industrials-  PH, COL, ETN.  energy-  RRC, RIG, HES.  Healthcare- BMY, AGN..  Discret.  TSCO, AN, URBN.   REITS-  AIV, EQR, PSA, VNQ..  Utilties-  NI, CNP, ED, PEG.  Let me know if you have questions