Bond Rally Resumes as September Gets a Shaky Start. Plus, an Update on New Double Barrel Trade

Last Week's Non-Sexy Trade is Looking Pretty Good this Morning!

September is off to a rough start, as I suggested might happen. But it’s too early to make hasty decisions about entire portfolios.  Instead, it’s best to let the market tell us what the proper course of action might be. In other words, this is a time to monitor each position individually and to let well placed sell stops do the talking.

The U.S. Ten Year Note yield (TNX) is falling aggressively this morning, remaining well below 4% in response to weaker than expected manufacturing purchasing manager data from both ISM and  S&P Global. Interestingly, the S&P Global data hit just after news that Volkswagen may close plants in Germany due to poor sales, suggesting that Europe’s largest economy may be slipping.

There is also lots of employment data this week, ADP, JOLTS, jobless claims, and this Friday’s payroll data, along with PMI and ISM services data.

Meanwhile, the New York Stock Exchange Advance Decline line (NYAD) remains quite subdued even as the major indexes sell off aggressively, as the technology selloff is rekindled with NVDA being the poster child for sellers.

The S&P 500 (SPX) is currently testing support near 5550, but could move toward a test of 5500 where the 20 and 50-day moving averages provide more important support along with two large VBP bars.

Trade Updates

Last week, I added a new trade which is holding up quite nicely this morning along with a group of four other active trades.  You can check them all out by becoming a Paid Subscriber or using your Free Preview.

Thanks to everyone for your ongoing support.  I really appreciate it.

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