Tony the Gluten Tiger is Played Out

Consistent with the recent theme of "safety" sectors unwinding amid higher rates, Kellogg Company looks ripe for further downside. Barring a buyout by a larger food company, the daily chart for K, below, has been bouncing poorly since its latest downdraft last week. 

Given the continued relative weakness in the defensive sectors, it is likely The Fed now needs to be extremely dovish in both their actions and words into the end of 2016 for these stocks to immediately recover. And even then, if the bond market somehow overpowers The Fed and renders their constant contradictions irrelevant by selling off anyway, I suspect these sectors are all the more vulnerable. 

Elsewhere, the market is generally soft, although the S&P is holding above 2130 for now. GPRO TWTR are upside standouts, while sugar and natural gas are showing some good strength among commodities.