After writing this post, per the Trade Log:
A brief post to illustrate that as long-term Treasury yields (30yr & 10yr) rise…
Over valued growth stocks like Tesla, Cloud, etc. are starting to buckle under.
While reflation-sensitive items like Materials, Banks/Financials and Commodities remain relatively firm.
The risk is that pressure is building on the Fed as we look upward to the 2.5% caution zone on the 30yr yield. I believe that volatility will increase as the process plays out. But as yet, the situation is reflation ‘ON’, but with over-valued growth stocks buckling.
Meanwhile, check out big Tech dropping below the SMA 50. That is not a good sign for growth and richly valued stocks. Just a macro snapshot for your consideration.