Morning Perspective

After clinging to support last week into Monthly options expiration, broke through it in the overnight hours to start this week.  This morning the downside action has resumed in earnest on the heels of the FED's rate hike, and more 'trade war' talk.


An interest rate hike would weigh on bonds...right?   30 year treasury futures are soaring this morning up over 1%.

The 10 year treasury is almost rallying .

Yesterdays rate hike is on the back burner for now, with bonds finding buyers in the face of a nasty pull back for the stock market.

How much more downside will we see in the short to medium term?

The wedge has broke.

I think the question now, is are we going to stop at:

(1) the lows for the year before the market recovers?

(2)  Or is the pull back going to come down to the higher low set back in the middle of February?

The VIX has been putting in a series of lower highs after breaking loose in late January:

It's up 14% this morning and over that key 20 level.    A move over the 25 level would buck the 5 year trend of seeing these initial spikes put in lower highs until the VIX  returns to 10-12.   A break of 25 would likely point to a move back to the 2018 lows.

Clearly 2018 has brought back the volatility that has been missing the last few years.   And with it, price action that is giving bulls and bears alike the opportunity to participate.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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