ECB Hikes 50bps, I'm Profit Taking on Rally

I am biased to the short-side on equities from here, but I don't think the rally is done.

My calls on EWG and EWI are liking the ECB rate hike this morning.

Equities and the euro rallied on the news. Crude oil and other commodities bounced on the news. Gold came very close to its last line of support before bouncing. It is dutifully returning those gains at the moment.

Long-term U.S. bonds still in a trading range.

Crude oil is halfway between $100 and $90. It needs to lose $90 for real bearish moves to kick off again.

NQ has no resistance above today. I don't expect a rally that would challenge the next resistance line. Gains may be hard fought because it is back to the early June consolidation zone. This is the last major resistance before the final leg of the bear rally kicks off. It won't guarantee the full 25 percent, but that'll be a stretch target should NQ climb 4 percent from here and break that resistance.

SMH popped again this AM and I closed my calls. I might go back into August calls, but thinking a pullback is coming. I am holding my XLC calls because they are too illiquid to trade. Between what I'd pay to get out, and back in again, plus if I mistake my timing, it's not worth it. If you have shorter-term options like $58 strike and can get a good price, maybe take profits. I'm thinking the market will meander ahead of the Federal Reserve meeting on July 27, which is the same day Meta reports after the bell.