Bonds Waffle, while Stocks Wait For Powell’s Comments. Plus, New Monday Trade.

We continue to focus on what’s working.

Last week, we took an $800-plus profit on Cheniere Energy (LNG), as our results, directly below, show.  This week, I have a new trade, which you can check out below our market update.

SOLD – Cheniere Energy (LNG). Bought 6/24/24: $165.50.  Sold /28/24: $174.27.  Return for this trade: $877/100 shares (5.29%).

Market Update

The U.S. Ten Year Note yield is back above 4.4% and its 200-day moving average.  This is of some concern as the stock market’s relative resilience lately has been due to the decline in bond yields.  Because of this week’s holiday related thin markets, this could get worse in the short term.  A move above 4.5% would be very concerning.

You can see the negative effect of the rise in TNX in the Nasdaq 100 index (NDX), which has rolled over and seems headed for a test of its 20-day moving average. 

Interestingly, the jump in yields has persisted in the early going despite the most recent decline in the ISM manufacturing survey (48.6 vs 49.2 expected) and a below expectations (52.1 vs 55.8) reading on the ISM Manufacturing prices component. Meanwhile the S&P Global U.S. Manufacturing survey came in 51.6 vs expectations of 51.7.

The bottom line seems to be that the market is now waiting for Fed Chairman Powell’s comments tomorrow about the future of Fed interest policy.

We continue to look for areas of strength in the market. Today’s trade features a tailor made short term trade on a Wall Street brokerage firm.  This is a great opportunity to exercise your preview subscription, if you haven’t already done so.

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