Option Investor
Market Updates

We've got power!

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I was pleasantly surprised to see that power was restored to our city block this morning so we've got some catching up to do with our charts. It may take a couple of hours to get back up to speed on where things are technically, so I'm not going to be throwing out any buy/sell recommendations just yet. Here's what we are looking at near the open of trading.

Bond Yields

Yesterday before we lost power I noticed that the 30-year YIELD (TYX.X) was lower while the 5-year (FVX.X) and 10-year (TNX.X) YIELDS were higher. That's pretty close to what we're seeing this morning. A quick glance at the 30-year YIELD shows that it has run right into the 200-DAY moving average and that seems to be a sticking point for technicians that are buying/selling the 30-year. It could also be a sticking point short-term for any powerful rallies for stocks. Just like we had some problems for a couple of days for this YIELD to get through that long-term downward trend, we're now going to look for a break above the 200-day MA to get more aggressive on the buy side for stocks. For now, be willing to trade for profits, but things have gotten much more bullish for stocks than they were two weeks ago.

Equity futures fractionally higher

Equity futures are slightly higher for the three major equity indexes we follow. Currently, S&P futures are higher by 2 points, NASDAQ futures are up 20 points and Dow futures are higher by 20. S&P fair value for today is $7.25. That price will not change during the day. Programs buying is set for $10.50 and sell programs are set for $4.00. To find out more about fair value and program buy/selling please visit www.programtrading.com

Jeff Bailey
Senior Market Technician

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