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Bond YIELDS slipping

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Bond YIELDS have dropped rather quick this morning and has caused me to become a little defensive in the past hour. On PremierMarkets.com "hot list" you've seen me taking some nice profits in calls on Lone Star Tech (NYSE:LSS) from yesterday. This was a steel stock that we felt yesterday would be poised for a "pop".

10-year YIELD Chart - 60-minute interval

One thing that concerns me somewhat on the above chart is the lower highs for MACD on the 60-minute chart of YIELD for the 10- year. This tells me that this bond is trying to find a pivot point for YIELD. The recent selling we've seen in bonds in the past weeks obviously found its way into stocks. Now I've got to be concerned if money starts flowing the other direction. PremierMarkets.com is pretty long in our account for stocks. Thus I added some QQQ puts in the "hot list" to help hedge us and also took some nice profits in some call options on LSS. Account management is key for traders and investors.

Jeff Bailey
Senior Market Technician

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