A Get Out of Jail Free Card

The Nasdaq is back to trading lower in lockstep, or so it seems, with prices on the 10-Year Note as rates push higher yet again this morning. 

Just as it seemed as though we would waterfall lower, a rumor apparently hit the tape that Powell may announce some form of Yield Curve Control tomorrow. My best guess is that the Fed is simply putting out a feeler to see how the market reacts before committing to official YCC or another Operation Twist. 

Still, the QQQ ETF likely needs to at least recapture $315 today in order to stave off a bloody afternoon. Should this little intraday bounce fail, I have my eye on a few bearish bets, though I am not inclined to be "naked" short in this market yet. Instead, I still see sectors like uranium as being outpeformers, not to mention deep value dividend paying stocks like kHC MO PM, three of my favorites all green so far today. 

Boeing (BA) and some big banks in the Dow are also trying to offset the Nasdaq weakness, on top of small caps flashing green. However, with heavyweights like ARKK TSLA struggling, we would be remiss not to pay attention to them as well as the "FANG" names closely even if we do not trade them, per se, given their sheer market caps and leadership positions for the longest time. 

Overall, bears are pining for a get out of jail free card from this epic melt-up since March 2020, if not March 2009. The bond market spiraling out of control may be just that. But before we jump to that conclusion we had better expect The Fed to throw everything they can at Treasuries to stabilize them first.