New England Options Traders Group - Learn, Practice, Do Message Board › Huge Market Sell-Off...hint: watch 10 Yr Italian Bond Yields
Beacon Falls, CT
U.S. stock futures are sinking this Wednesday morning as we saw a very sharp spike in Italian borrowing costs on their 10 Year Italian Bonds. The Dow opened down over 240 points and the S&P 500 fell almost 30 points with investors panicking over the very high yields currently underway in the Italian Bond markets.
We've been watching 10 Year Italian Bond yields for over 5 weeks now in our Pre-Market Trader Sessions as a proxy for the underlying health of the global markets so it is no surprise to us when sell-offs like this happen...even with the large bullish moves we experienced during October we were watching the Italian Bond yields rise from 5.62% to over 7%. These yields must come down in order for the global equities market to settle down.
If you are not part of our Pre-Market sessions send me an email and I will get you set up...don't pay attention to what the "talking heads" on TV are saying and learn to watch what really matters...price action and the flow of money is what you should be closely watching....
Trade Smart -- Not Often