Out of More Calls, Stopped Out of Long, Added XLC, TLT

If this rally will survive, it will have to turn around here. Nasdaq has retraced the entirety of its breakout from the inverted H&S pattern.

Here is the ES and SPY. The former has formed a nice base and retest around 3820. The latter still has that gap down at $378.83, but also still has that island reversal below.

I did add to the XLC trade today when it filled the gap.

Here is TLT. My sense is that bonds can rally on stock weakness or strength. It's a trade though, not sticking around for a flush to new lows should the bond and stock markets crash together.

If the market has peaked ahead of another sell-off, this could be the carnage wave that takes SPY down to the 3400 area. Stocks that are "off the beatean path" may be good for options. Real estate and a commercial mortgage fund such as this one could prove profitable.