Waiting in the Trees

The "safety" sectors continue to act more dangerous for bulls, with bears patiently waiting in the trees and beginning to make their way down to ground level for an ambush. 

Case in point: Dividend-paying and rate-sensitive telecommunications plays like T VZ are both taking it on the chin this morning, while REITs in the IYR and utilities in the XLU are not faring too well considering bonds are bouncing a bit (meaning rates slightly move down). 

With this in mind, another defensive/safety play which looks to be exhausted after seeing money piling into it for years on end is the tobacco play, PM. On the daily chart, below, the international spin-off of MO is bear-flagging below broken support (purple line). 

If and when this minor bounce in Treasuries fails, names like PM should open up good short entries as rates move higher yet.