Starting to Come Together

The thesis we looked at yesterday for rates to head higher may very well be starting to play out. Specifically, the rate-sensitive sectors in equities, REITs and utilities, are weak this morning (IYR and XLU ETFs as proxies, respectively), while Treasuries are looking heavy and vulnerable to following suit, keying off the TLT ETF. 

As a result, I have my eye on the SRS TBT TMV instruments to play the bear side if I find a proper entry. 

Elsewhere, AA is seeing a post-earnings swoon, as the long-term chart still shows a confirmed topping pattern. It may be a change in character, too, to see the lack of a false breakdown attempt on the top as we have seen we may times in this bull market. 

And the USO, ETF for crude oil, is coming back to its 50-day moving average and coming to terms with it after yesterday's reversal.