Dodging Incoming Missiles

We have some interesting spreads to note this morning, as Chair Yellen reassures the markets that no Fed rate hike is imminent. It is important to be aware of these moving parts of the market to dodge any potential bullets, should the divergences get resolved quickly. 

In particular, TSLA is selling off even as oil rallies. While the two have not been trading in lockstep, the Tesla weakness does add credence to the bear case we looked at yesterday. Still, getting below $192 is going to be the big nut to crack for bears to really make headway in terms of a major top. Otherwise, this is simply a leader with a sloppy chart. 

In addition, REITs are selling off hard, via the IYR ETF, while Treasuries try to bounce. I am still looking to short the REITs, via a long SRS or long DRV play. But I would prefer to see bonds confirming the move lower. 

And Home Depot looks to be entering its final blow-off phase after stellar earnings. The stock, in my view, has reached its own euphoria phase with the final stages of its bull run in progress. I am an interested short, going forward.