S2 Option Trader

[SyndicateTwo]

Well, first watch this chart very closely--->>






If that yeild breaks below 3%, then what the bond market is tellin you is that the economy is starting to roll over in a meaningful way and that inflation is nowhere to be found. In that case, the stock market will have to follow it. Almost every tech stock earnings has supported the idea that the economy is nowhere near as strong as the bulls have said. It's all an illusion.

The Russell will get hit the hardest because the only reason people buy those stocks is to play catch up with the SPX. Small companies have a harder time making it in the real world because they don't have the credit or cash to carry them like big companies do.

So, TZA should be a big winner. But for now, you have to go with the idea that the market is just not going to be allowed to go down in a big way until something forces the hand of whoever is out there holding it up. Everyone knows the market is overbought/valued.