Please enable javascript in your browser to view this site!

Yield Surge spooking stocks, not unlike 9/9-12 period of TNX breakout

Equities have quickly reversed gains given the SPEED and sharpness of this TY yield surge-  Remember, this period is not UNLIKE the time from 9/9-11 when yields moved up above 1.62 in 10s and SPX dropped sharply down to 2120 in just a couple days time.  While the market doesn't mind a slow yield move.. a sharp rally tends to be a bit more problematic.  Most Yield related sectors remain SELLS-   Real estate.  Utilities, Telco.. and while Financials indeed are positive by a small amount, it remains the weakness of the broader market which continues to be a concern-  Industrials, Discretionary.. both down -0.50%. +  and Energy weakness now also has started in the last couple days.  While Tech and Financials DO account for a very large 34% of SPX..  the other 66% is the problem right now.. given that many sectors just aren't acting well-  this YIELD surge is accelerating.. TNX now at 1.86-   One should look to sell XLU, stay short VNQ and consider selling Gold, as difficult for gold to hang on with yields moving sharply higher, but for many, under 1260 will be the real clue-   LONG TBT, XLF.. short VNQ, XLU, GLD