August 14th Daily Market Note: Stocks continue the tug of war against the 10-Year Treasury Yield with No Clear Winner Yet
Premium Daily Note (Sent to Members Only): August 14th, 2023
Daily Market Note: August 14th 2023 by Larry Cheung, CFA
Stocks continue the tug of war against the 10-Year Treasury Yield: No Clear Winner Yet
Folks, the guided upon Sell Puts transactions from last week are mostly working well as of this note. However, volatility is starting to creep back into sessions so practice incredible caution and closely guard capital.
Forward-looking Conclusions of this note:
Macro: Last week’s re-accelerating CPI and high Oil prices are baking into further strength in the 10Y Yield, which has reached 4.2% as of this note. The 10Y needs to come down before equity market strength can be trusted.
U.S. Stock-Specific: In this choppy environment, I continue to believe Selling Puts is one of the best defensive ways to retain modest upside. Below, I will discuss a follow-on transaction that can help to hedge exposure.