Stocks inched lower today, pulling back from a sharp prior-day rally, as investors looked ahead to the prospect of interest-rate increases later in the year. The pullback comes as investors say the odds are rising that the central bank raises interest rates at its final meeting of the year in December.
We just got though Wednesday’s Fed nonsense and the market is already worrying about December. Get used to it, I know I have. It never ends.
Bond yields are rising and utilities look bearish so maybe for the one millionth time the street thinks rates will finally rise this time. I’m skeptical.
The 10 year note (TNX) is approaching important downtrend line resistance, so the next week or so should be interesting. Yield closed today at 2.17% Gold and the miners are also rolling over again which are also rate sensitive sectors.
The market is tricky here. Yes, we could go higher, but risk is higher here too as we reach the nosebleed seats.
For the most part I was on the wrong side on this rally, but I know I’ll get another bite at the apple. Always do.
I think biotech may have had its short term run, IBB and SBIO (smaller cap bio etf) both backed off resistance today. There were also some decent reversals in some of the large cap bio’s today.
IBB
SBIO
New short idea BTU, is imploding daily and I expect more to the downside.
I’m looking at a fair mount of longs and and shorts here and my next move will depend on the market.