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What the Bond Market’s Turn Means for Stocks and Volatility

by | Jun 7, 2022

U.S. stock futures traded lower this morning following Target’s profit warning that sent its shares down more than 8% in premarket trading — and more in Tuesday’s stock market recap.

If you’ve paid attention to anything I’ve said the past two months, then you already know the iShares 20-Plus Year Treasury Bond ETF (Nasdaq: TLT) has been trading sideways for two months now. This meant there was less pressure on the market because higher bonds means lower interest rates. 

But over the past five days, the bond market has started to move lower…

That tells me there’s now more pressure on the broader market because when bonds go down, rates go up. However, even though rate sentiment is changing, the SPDR Dow Jones Industrial Average ETF Trust (NYSEArca: DIA), which tracks the 30 large-cap Dow stocks, has held its own. 

If the DIA continues to stay the range it’s in right now or consolidates, I won’t be too upset. But if it starts to break lower, there’s a good chance we could be down for the count, which will be a big deal. 

In this morning’s stock market recap video, I’ll explain why the bond market is putting stress on stocks… the next major catalyst for stocks… one indicator we need to keep an eye on right now… key levels for the major indexes… the biggest Federal Reserve report this week… whether stocks will sink or soar in the near term… and one sector I like right now. 

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

P.S. Have you checked your retirement account lately? 

A friend of mine recently showed me hers and it was down nearly 30% and, unfortunately, she isn’t the only one I’ve heard this from lately… 

Most traders have lost money this year.  

Now, I’m not saying this to scare you…

It’s a warning, and I’d also like to invite you to take action at 9 a.m. Eastern on Saturday, June 11, when I’m holding a private training class to show everyone the critical move they can make to help protect themselves from further downside… 

RSVP Here! 

P.P.S. When it comes to trading, every second counts. And in choppy markets like these, often driven by headlines, stocks can make big moves in a flash.

That’s why I want you to get my latest trading ideas and market updates as fast as possible. So I’m rolling out an all-new option for my students to receive trade alerts with Telegram!

Telegram allows me to get trade ideas, videos and watchlists to you in a matter of seconds.

Check out this short article we put together with instructions on how to download telegram and access my private channel. Go here to get the details. 

Stock Market Recap: By the Numbers

This morning’s stock market futures recap: 

DOW (mini)

  • Close: 32,915.78.
  • Futures: 32,648.
  • Change: -264.

S&P 500 (mini)

  • Close: 4,121.43.
  • Futures: 4,081.5.
  • Change: -39.5.

NASDAQ (mini)

  • Close: 12,599.63.
  • Futures: 12,439.
  • Change: -167.25.

RUSSELL (mini)

  • Close: 1,889.89.
  • Futures: 1,872.1.
  • Change: -16.6.

Note: Updated as of 9:16 a.m. EDT.

On Tuesdays, I’ll detail the strongest and weakest sectors in the entire market. I’ll tell you exactly where I’d put my money and go long, and which ones I’d avoid or even short. Using my proprietary momentum indicator, you’ll get actionable ideas on every market sector, every single Tuesday. 

Need help understanding some basics that we discuss frequently? Check out some of our educational pieces to help get yourself up to speed! Have a question or a topic you’d like us to explain in a future article? Send your thoughts to support@marketgeeks.com

Check back each morning for the Roger Scott newsletter and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

Roger Scott

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