Breakdown, takedown, your busted
Ted Spread hit 3.60 today and Nas 100 broke prior lows.
8:55AM PST: Little bit of stability found with a higher low or two, maybe a safer play for the longs between here and the lows (with a mental stop set there). Keep an eye on the slope of the TNX and watch out for possible resistance at the falling VWAPs. Oil (USO) is down over -3%. [Add: Note that unlike the last pullback, gold is down today (GLD -3.5%). Obviously Europe holding rates has a role in this with the USD +0.69%... but nevertheless not overwhelmed by fear!]
10:15AM PST: As highlighted above, hit those VWAPs and, surprise, surprise... back down to the lows. Tick is very negative - Vix back on the rise.
11:25AM PST: So now Ms. Pelosi says she'll hold the vote until she knows it will pass. Brilliant. I'm flabbergasted they had to follow their bill-hold rule for tomorrow (so pork could be added)... and on top of Jobs! Come on guys, entire industry verticals are choking for air. VIX 55+ anyone? At this rate I have to put SPY support at $111 for today. What a puke.
12:50PM PST: IRX is at 59bps (low of 25bps Monday)! I will carry long overnight inspite of the jobs risk. Now get the popcorn and tequila ready for tonight's "debate."
PREOPEN FRI: Bad jobs, but price is holding higher. On one hand, I have been concerned about low volume for these large downdrafts, on the other, cumulatively that's still a lot of selling. Also, I suspect the market may be anticipating federal maneuvers beyond the passage of the bill to occur soon... something to think about. Did you see this?
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