The Weeks Ahead: Watch Rates Closely

The first chart below is the US 10 Year Treasury Bonds Yield. The last time it broke out of a double top channel was in January 17, 2022:

Blue & Red Arrows = Trend Model Buy & Sell Signals

The next chart tracks SPY from the breakout above throughout calendar year 2022. SPY fell from 480 to a low of 348 in October. That is a 27.5% crash over 10 months. A similar move now will take SPY from its current 440 to 320. 

SPY - Current: Intermediate Term Sell Signal on August 15, 2023

At Blue Line Trading System we capitalize on pattern recognition forecasted moves by seeking out the best situated options, ones expected to increase 5X to 10X to 20X for over the duration of the forecasted move. 

I'll chronicle our progress here in this free weekly newsletter, but if you want to participate real time, real money in our option trades you will need to be a paid subscriber, or have enough confidence in your own option trading abilities to figure it out yourself, or,  in that perfect world, both.

Bottom Line

Watch interest rates closely over the next few weeks. If and when they break out above last October's highs, around 4.335% on the US 10 Year Treasury Yield (currently 4.239%), best trading practices strongly suggest aggressively bearish positioning on US equity indices.

TSLA: Whopper of A Tale Still to Come

In 60-90 days, it will all be over, except for the positioning for 2.0 million Cybertruck pre-orders barely yet factored into TSLA's share price, nor the transformational artificial intelligence accomplishments of Tesla's Full Self Driving, about to make Tesla robotaxis as ubiquitous as yellow cabs in Manhattan.  I'm getting ahead of myself, so let's end this here with emphasis on a clear and simple interest rate observance strategy. There's plenty of time for that other whopper of a tale still to come.