The Closing Print live trading and financial blog during market hours.

We haven’t used this headline in over five (5) months to describe the S&P 500 (SPY). Is this time different? In a word, yes. This time is different, specifically with regard to the FED. That said, the financial media got this message twisted on Friday, sending the market into a frenzy over the yield-spread. Outflows eclipsed $20 billion in equity funds alone.


Will these traders regret their decision to exit the equity market? Maybe they will, but caution was warranted going into the Mueller Report scheduled release. Maybe they had too much riding on equities. Only you can determine that weighting and measure your risk accordingly.

If your portfolio has too much risk. It’s always a good idea to check your allocations and rebalance occasionally. We have a large position in IVV and AGG as an example. The latter benefited from the $12 billion inflows noted by Bank of America.

In 2014, 2016, and 2017 bonds managed to rally with equities, so it should be no surprise AGG is doing well; 20 weeks and still running for fresh new highs. TLT broke out last week.

SPY Daily

All things considered, SPY daily is still trading near a major resistance zone, which bulls have attacked numerous times. The most recent attempt seemed ready to start trending until news broke of the 3-month yield dropping below the 10-year.

SPY Daily – 281 (+/-) resistance or support?

The “financial media spin’ is very interesting, so let me explain.

Prior to Friday, CNBC, FOX, and Bloomberg were all in a lather over the 2-year vs. the 10-year. No one mentioned the 3-month until Friday; so, now we’re to believe this is “the” standard?

Either way, whether we use the 3-month or the 2-year, we have at least 18-24 months before the markets make any major decision. A recession is the other worry; we covered that in the weekend video newsletter.

2-year Yield Spread

2/10 year spread forecast 18-24 months before market turned in October 2007

Wait for price action to confirm your decisions this week.

Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade SPY and other new positions. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading,


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Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advise” to enter any particular position or asset.

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We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.

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Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.