Option expiration week coming up and a stack of puts at QQQQ 43 and 44. Shades of May when all those put sellers had to cover by going short. Unless they fight to hold them up, but hedge funds will be pressing on if they feel the easy money is now to the downside. Overnight action will tell us what they are up to. With no big tech earnings until Feb 20th (HPQ), the markets will be vulnerable. Relief would have to come from lower oil and lower interest rates.
TNX is on the rise again and if it pops its head above 4.8%, short ER (RUT futures). That one has a long, long way to go before PE value gets reasonable again, especially in a rising rate environment. ER failure at 38.2% projection January (820) gave us a pretty convincing sell signal if TNX is not bear flagging. Watch ER 811, 50% February.
Chart
TNX is on the rise again and if it pops its head above 4.8%, short ER (RUT futures). That one has a long, long way to go before PE value gets reasonable again, especially in a rising rate environment. ER failure at 38.2% projection January (820) gave us a pretty convincing sell signal if TNX is not bear flagging. Watch ER 811, 50% February.
Chart
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on Friday, February 09, 2007 at 2/09/2007 08:32:00 PM.
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