Stocks Tumbles From High Interest Rates Fear

$SPDR S&P 500 ETF Trust(SPY)$ Bearish

63% gain from taking both puts and calls on TSLA. Tech stocks were slipping Tuesday afternoon with the Technology Select Sector SPDR Fund (XLK) falling 1.8% and the Philadelphia Semiconductor index shedding 1.5%.

⚠️ Trading tips: looking at SPY puts below 425 and calls above 428 on Wednesday. Using SPY to trade the other faster moving tickers this week for a quicker gain as well.

Trend is your friend

The S&P 500 information-technology sector officially entered correction territory Tuesday when it closed at 2,869.6 after falling 1.8% on the day. The drop brought the index down 10.5% from its 52-week high of 3,207.29. A stock or index is said to be in correction territory once it has fallen 10% or more from recent highs.

The central bank's plans for interest rates unveiled after the close of its September policy meeting have been widely blamed for driving recent moves in Treasury yields and the dollar.

Moving into extreme fear this week

The rising real rates -- that is, bond yields adjusted for inflation -- could continue to create headaches for stocks. As Cossel showed in a chart from earlier this week, the S&P 500's valuation on a forward price-to-earnings
basis remains conspicuously stretched based on where 10-year real rates are trading.

The 10-year real rate Cossel used here measures the 10-year nominal Treasury yield BX:TMUBMUSD10Y adjusted for the
10-year breakeven spread.

"Unless rates fall, the S&P 500 looks vulnerable at current levels," Cossel said in the note.

U.S. stocks closed sharply lower Tuesday, with the Dow Jones Industrial Average DJIA seeing its worst daily drop since March, while Treasury yields pushed higher and a popular gauge of the U.S. dollar's value reached its highest
level in 10 months. The ICE U.S. Dollar Index DXY, the gauge mentioned above, rose 0.2% to 106.18.

Buy puts

Buy call

Buy call

Tesla (TSLA) and European automakers that ship electric vehicles made in China to the European Union are set to be included in an anti-subsidy investigation by the European Commission, the Financial Times reported Tuesday. Tesla shares fell 1.2%.

The Dow fell 338 points, or 1.1%, to 33,618.88, the S&P 500 SPX shed 63.91 points, or 1.5%, to 4,273.53, and the Nasdaq Composite COMP fell 207.71 points, or 1.6%, to 13,063.61.

Please click Like 👍, Comment 💬 & Repost 🔄 this article found at the bottom of your screen. Follow me for the latest news, trading ideas & strategies to ride the market daily with profits! 🤑

@CaptainTiger @MillionaireTiger @TigerClub @Daily_Discussion @Andreana @koolgal @Aqa @KylerLee