Karpel’s Corner: Market likes negative EU rates; bears are sick of this action

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and  never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The market got the catalyst it was looking for to continue the upside move, and it came in the form of negative interest rates in the ECB.

While this has stocks climbing higher, it really made the bond markets volatile. The notes had a HUGE ~3 percent range yesterday, a scalpers delight for the first time in a while.

Another sector that is on the move is the Consumer Cyclicals ($XLY), which have broke through key resistance today at $66.61.

We talked about the strength in the autos earlier this week ,which is a driver in this sector. If the key names –$F, $HMC, $TM, and $GM — continue to perform this could catalyze this sector further.

I am also watching Amazon ($AMZN) and Best Buy ($BBY).  These consumer names have been on the move, with $AMZN seting new highs for June trading and $BBY challenging long-term resistence, the 200-day moving average.

Keep an eye on the Tradespoon Bull and Bear picks focusing on the short-term trend for ideas going into July. And, for you portfolio hounds, look for the long-term trends with 10 for bullish and 0 for bearish oppotunites.

Have a great weekend. See you next time at Karpel’s Corner!