British are coming, the British are coming… With an increase in rates that is. And with the language they used in raising their interest rates, look for at least one more rise this year. The raising of the rates can have the effect of lowering bond prices around the world. The US 10yr is down this morning. Interest Rates are moving up.
The US 10yr just completed a 38.2% retracement of it’s previous move. This UK news coupled with the technicals could cause a bounce here. I am looking for the TNX to test it’s highs, and put pressure on the market. Although, the Stock Almanac shows a historical down day today, then 5 of the next 6 as statistical up days.
IACI – is dropping nicely. My underlying target is 31.61.
IWM – I put one more contract on Aug 84-81p @ .82 (ave price .87) at the high spike this morning. 84.63. I am not putting any more on. I am just looking for a smackdown. We’ll see if it comes.
CLF – is looking good. It broke above minor resistance level 81.55. I only have half a unit on this trade. I will just let the butterfly ride.
7/5 – Independence week
British are coming, the British are coming… With an increase in rates that is. And with the language they used in raising their interest rates, look for at least one more rise this year.