Mid-way through the first week of September two factors are weighing heavily on the stock market. First, interest rates continue higher with the US 10 Year Treasury Bond Yield knocking on the door of 4.30% and that the double top breakout scenario discussed in the past Weekend Update. US 10 Year Yield - Weekly Second, TLT looks ot be falling out of bed: TLT Weekly Higher rates working as a strong headwind for stock prices is setting up for some opportunistic put trades in SPY - IWM - QQQ. We have some positions already, but more will be added as a broad-based stock market decline begins to unfold. A close today below 34,500 brings a key level break of 34,000 into view, Upon a break below 34,000, it's all in on the short side (i.e., more puts).
