Confused

I have never been lost, but I will admit to being confused for several weeks”- Daniel Boone

I’m confused now. The $SPX and Dow are at highs while our other two indices have the glide pattern of an anvil. Is the dog wagging the tail or is it the other way around?  I was less confused during the crash, and when Europe was falling apart, then I am now.

Yields are plummeting, so the bond “type” equivalent names (that make up S&P and Dow) are holding their bids. So if bonds do decide to go lower and yields rise, will the S&P finally rollover? We saw this action in January, remember the 10 year was 3% then.

Just a theory, and right now there are no shortage of theories. If you are a believer that the S&P and Dow are being held up for this reason, then you can make the argument that they will eventually follow the Russ. and Nazz lower.

Stocks like $T and $VZ are making a comeback of late. You can grab 3-4% there. The 10 year note pays you 2.50%

I can see a short term bounce here, mainly in Russell and Nasdaq, obviously because they are the most oversold. After all, the Russell is down about 10% from its high and nothing goes straight down. Will it stick?

$VIX is paralyzed.

The Nasdaq held some short term uptrend line support last week, but gun to my head, I fee it needs to go down and test the 200 day moving average at the very least. I base this solely on the charts.

Long a lot of cash right here. Small longs in $TNA and $QQQ

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