8/17/23 No Fear As Bonds Hit 15-Year High


The 10-year U.S. Treasury Note spiked more than 4% on Wednesday, closing at 4.258%, its highest level since 2008…

Chart from the WSJ
  • The last time rates were this high was just months before the Great Recession of 2008
  • Past surges in bond rates have led to destabilized markets

The higher rates, coupled with the hawkish-sounding Fed minutes, sent stocks lower during Wednesday’s session.

The indexes all closed the day deep in the red (again)…

  • Dow Jones -0.5%
  • Nasdaq -1.2% 
  • S&P 500 -0.8%
  • Russell 2000 -1.3%

Sector Round Up

Bears held almost every corner of the market on Wednesday. 10 of the 11 sectors finished the day in the red.

The lone winner…

  • Utilities (XLU) +0.4%

At the bottom…

  • Communications (XLC) -1.2%
  • Real Estate (XLRE) -1.2%
  • Consumer Discretionary (XLY) -1.2%


Bond levels are rising, and key support levels are being breached. It all sounds very bearish.

But there is still a missing ingredient … FEAR!

VIX Daily Candles – Chart by thinkorswim

The VIX is still holding on to historically low levels this morning, even as selling interest far outweighs buying.

The VIX typically rises when stocks fall. But the past two days have bucked that trend.

Trading volume has been lighter than usual this week. Our take … investors aren’t panicking—They are waiting for their moment to pounce.

Your latest readout…


With the put-to-call ratio grossly out of whack, we’re looking ahead to the options expiration this Friday.

Sellers could be forced to cover, which could squeeze the entire market higher.


*Low Float
^Open Position

*RETO support at $3.50
*HKIT on watch
*GCT support at $11
*TSAT on watch
*JUPW has support at $1
*GROV support at $2.50
*ACIS (formerly UIHC) support at $7
ETON support at $4
GRPN support at $10
EYPT support at $13
EZGO support at $2.25
TDUP support at $4
LAB support at $2.60
TDS on watch

Secondary watchlist—float 100+ million

EVLV support at $7

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