Equity volatility is still high with large daily and intraday swings in both directions. I expect this to continue until bonds find and test lower support.
iShares Barclays 20+ Year Treasury Bond Fund (TLT) weekly
After breaking intermediate support (green upwards sloping trend line) in early February and blowing up equities TLT is likely to trade lower into the 115 price level, the next support zone. If this level holds I would expect equities to benefit.
SPDR’s S&P 500 Trust Series ETF (SPY) daily
The recent daily price action of SPY is a mixed bag of direction closing Monday at 272.19. Long term upwards trend is still intact. Continue to hold.
SPDR’s Select Sector Financial ETF (XLF) monthly
The monthly chart of the XLF shows price history for the past 19 years. Please note that current price is nearing the highs from 2007 just prior to the “financial crisis”. It has taken 11 years to get back to this price level. This price zone is important resistance. Continue to hold.
ETFMG Alternative Harvest ETF (MJ) daily
Warning: Volatile price action.
Price recently traded down into support and bounced. Risk is closing below trend line support. I am putting this on the buy list. I am a buyer Tuesday morning.
Goodyear Tire&Rubber Co (GT) weekly
I recommended this on November 20, 2017. Price has broken intermediate support, the rising yellow line, and is likely to continue falling. Sell GT for a loss of approximately 7.5%. We might get another chance to buy it down into primary support.
Continue to hold all other open positions.
On a different note, my wife and I celebrated our 40th wedding anniversary in San Diego with our kids over the weekend. We started with lunch at Jakes in Del Mar. After that we looked at model homes in a new residential development in Carlsbad. We then had dinner at Paon in Carlsbad. On Sunday we looked at baby strollers (expecting another grand daughter) that cost more than my first car. WTF?
The high end restaurants are full, starter homes are $1,000,000 and baby strollers are equipped with corinthian leather, GPS and four wheel drive. Maybe the economy needs higher interest rates? Or, maybe San Diego is just that cool.
Trade Smart,
Don