Ten-Year Yields Under Upward Pressure, But Not Enough For Major Breakout

posted in: Credit, Economy, Technicals | 0

Ten-year Treasury yields rallied last week to right underneath the top end of a three-decade-old channel.  A breakout has to wait for now. The 13-basis-point jump last week was big, and probably took many by surprise.  At one point, yields … Continued

TLT Repelled At Resistance – Likely Headed Lower Near Term

posted in: Credit, Derivatives, Economy, Technicals | 0

Last week, bond bulls wasted a big opportunity.  Sort of.  Intraday Friday, 10-year Treasury yields broke down, but only to recover big by close. On December 15 last year, yields hit 2.62 percent before retreating.  This resistance goes back to … Continued

Iron Condor On SPY Assuming Range-Bound Action Continues This Week

posted in: Derivatives, Equities, Technicals | 0

Of late, volatility has been volatile.  Twice in the past 15 sessions, VIX, the S&P 500 Volatility Index, has surpassed 16, only to quickly reverse to the downside, and broken below 12 three times, only to reverse to the upside. … Continued

Weekly Cash-Secured Put On TLT

posted in: Credit, Derivatives, Technicals | 0

As expected, Fed Chair Janet Yellen, in her Humphrey-Hawkins testimony yesterday, reiterated what she, and other Fed officials, have been saying for a while.  They are data dependent, and if data cooperate, a rate hike is coming later this year.  … Continued

Peek Into Future Through Futures

The following are futures positions of non-commercials as of June 2, 2015.  Change is week-over-week. 10-year note: Yields have decisively broken out of a five-month downtrend channel.  The only question is what triggered this. To quote the Beige Book: “The … Continued

Range-bound SMH seems ripe for neutral option strategy

posted in: Derivatives, Equities, Technicals | 0

SMH, the semiconductor ETF, has been range-bound since last September.  Looking at a weekly chart (the one below is daily), the path of least resistance seems down in the medium-term.  Bears had a great opportunity seven sessions ago to push … Continued