Yields Soar, Stocks & Bonds Selloff — So What?

So What? So Let’s Trade.

Bond Yields Soar, Contagion Spreads (Stocks & Bonds Selloff)

The trend continues. Market futures lower. Bond yields are upsetting markets, and this time it’s real. Panic selling in bonds is spreading to the interconnected complex: banks, real estate, consumer cyclicals, utilities, even REITs. 

The 10-year just tagged levels we haven’t seen since 2007. The 30-year is at a 2004 high. Last time the long end lived in this neighborhood, the same rate-sensitive names were the canary in the coalmine. Housing. Banks. Real estate. We all know the next chapter: the 2008 Armageddon trade.

That’s the hook. It’s not the trade — not today. 2008 didn’t show up as a VIX spike on day one either. It showed up as a slow bleed in the interconnected stuff first. March 2020 is the comparison everyone reaches for, and it’s the wrong one. That tape was a dash for cash — they sold Treasuries with everything else — and then the Fed cut, printed, and backstopped the system. That’s when the panic buying of tech and crypto (before the sentiment change) started. This time is different, but the canary is still singing. 

Same sector rotation I flagged after Yom Kippur: the wrong sectors are leading, BUT WITH THE ADDED CAVEAT -it's the rate-sensitive stuff that's unwinding the fastest.

Buy Yom Kippur — But The Wrong Sectors Are Leading

IF (big if) this keeps going, contagion can spread. As of today it hasn’t. Whole segments of the market are practically untouched — consolidating, not crashing — which is why the $VIX isn't skyrocketing. Don’t trade the headline. Trade the rotation.

The Sector Trade Most Traders Are About To Miss 

Updated bullish chart @ the live link @ stockcharts .com
Start voting today - if I get enough interest, I'll add more charts as we get closer to earnings season. 👉https://t.co/MlAwULC3cQ

— Veteran Market Timer (@3Xtraders) September 23, 2026

That's right: After a change of heart, and against my better judgment I’m offering one chart — the trade I tweeted just ahead of yesterday’s closing bell. 

$PNQI (Nasdaq internet). One chart. One vote.  

The live chart is on the revived 3Xtraders public list - vote it up daily:
https://stockcharts.com/public/1839526

Read the annotations carefully. Do your own due diligence. Know how to set a stoploss. When the chart is working trade it. When is stops working... stop trading.  To quote REO Speedwagon: you gotta roll with the changes. 

Vote the list. Daily. If it gets voted up, I’ll add more charts as earnings season kicks off. If there’s no interest in sector rotation, I’ll delete the list. Creating a detailed chart, and updating it (daily) is a lot of work. I’ve got better things to do if nobody is interested in sector trading 

For now: don’t catch the falling knives in the markets I already named — banks, real estate, homebuilders, utilities, REITs. Set stops. Keep trading whatever is actually working.

P.S.
Look at the other chart I added. Closely. Crude Oil Priced in Bitcoin (ETF) $IBIT

I believe oil deals are being done in bitcoin and gold. The Oil Priced in Bitcoin chart is not subtle. The targets are hitting. The only other explanation is coincidence.

There are no coincidences on Wall Street.

 

"...Buy Yom Kippur", is Still In Play - But The Wrong Sectors Are Leading

The trade I pointed to a couple weeks ago [link]: "Sell Rosh Hashana, buy Yom Kippur". I had my doubts - at the time - ... but the selling did - in fact - continue right though triple witching Friday OPEX (options expiration), and that probably completes the cycle. 

Yet the same sectors that rallied last week are still leading - Not Financial, not the healthy, broadening-out rotation trade, not Aerospace, not even small-caps. 

Speculative Buying in Semiconductors & Crypto Continues 

Tim Seymour (producer @ CNBC) claims semiconductors are vastly "over-sold" - my charts dispute that claim, but let's ask Grok/ai, for a totally unbiased take on the technicals. 

3Xtraders Prompt: You know a little about stock charts/technicals. Is the semiconductor sector oversold, and if so, by what measure?

Grok's response: The semiconductor sector (SMH/SOXX) is not oversold. Daily 14-period RSI sits in the mid-50s—well above the classic <30 oversold threshold—and price remains above both the 50-day and 200-day moving averages after a 13–15% mid-year pullback from June highs that had followed extreme overbought readings (weekly RSI >80). That correction reset some excess but left the group in a neutral technical posture rather than a washout.

Semis Are Oversold Thesis Debunked 

What is the real reason Fast Money traders are piling into highly speculative trades rather than buying financials, and industrials. Here's the direct transcript from Thursday's the show [link to free muckrack/podcast] - Tim Seymour in his own words: 

Yup, he actually said that. Crypto's on fire too - but smart money isn't touching it

Cutting Through The BS 

CNBC Guest Katie Stockton nailed it:  08:06.469 --> 08:14.213

Well, the banks do look somewhat vulnerable, but everything has seen a pullback pretty much outside of the mega caps over the last two - three weeks.

A magic act so clever that most retail investors don't even notice.... but I cut though that mirage on Sept.10th [link]: 

"More *Broadening Rotations - More Broken Charts  

In hindsight while they've been levitating the market using the usual magic act (driving MAGS - including the only stocks that really matter ($NVDA, $AAPL, MSFT) higher, they were quietly unwinding the software-maggedon squeeze. Just as the msm told you the coast was clear?  

...but what may have flown under your radar (pun intended) is the great unwind in Aerospace (including Wall Street darling $GE - the one to watch) - and Airlines." 

Add to that home builders, retail (consumer discretionary) and every other sector they've unwound as earnings season approaches, and what becomes very clear is that we're about to see each one of these sectors window dressed (in Q4), as earnings come in miraculously, better than expected. 

That sets up for some of the Best Swing Trading in 20 Years [link]