Republic Risk: On the Brink

The 10-year bond has screamed from 4.2% to nearly 5% in less than two months. The bond markets are telling Washington to get spending under control. The Treasury Department seems to have other ideas.

Equity Index Strength Signals

RED on the S&P 500 and RED on the Russell 2000

Each morning, we assess the total flows of the market by measuring statistical metrics on a very specific number of stocks to determine broader sentiment and the momentum trend. When these readings turn red, we focus on cash, trade positive sectors, or take inverse positions against indices.

Market indices are struggling to break above key resistance lines.

The Russell peeled back yesterday after bouncing off the 20-day moving average. The SPY can’t seem to make a move either, holding above its 20-day average but stuck under its 50-day moving average. 

This morning, we’ll see how the Nasdaq performs after two very sharp reactions to earnings from Netflix (NFLX) +14% and Tesla (TSLA) -7%. We’ll be paying very close attention today to a speech by Fed Chair Jerome Powell before a blackout period leads to the central bank’s November meeting.