Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Bond Boom

|Includes: SPDR S&P 500 Trust ETF (SPY), TLT, VECO

The standout item on the board this morning is the booming rally in the bond market as yield on the 10-year note has dropped to 2.61%, the lowest level since March 2009. Could this be a blow-off or capitulation top? Not sure but I will be adding a little bearish exposure this morning on the theory that rates can only go t zero so my risk is limited.

Related, gold is up another $10 and seems destined to make a run towards the old high at $1265 but is still facing some resistance hear at $1230. I wait on that one and see if the old high come into a play for a possible double top.

Retail earnings will be taking the spotlight today and they present some opportunities in individual names but I’ll be cautious about pre-earnings plays and would rather be reactive and look for overdone moves that create attractive entry points.

I expect volatility to continue drift lower for the remainder of the summer if the skew gets large enough, that is later dated options carrying big premiums over the front month, may look at selling calendar spreads as means to get short theta but long gamma. This might work well in the Spyder Trust (NYSEARCA:SPY) if the market can continue to occasional deliver 2% plus daily moves within the broader trading range.

One name I’m eyeing for a new bullish position is Vecco Instruments (NASDAQ:VECO). The stock looks oversold and should find support near the $31 level. I’ll be back with an expanded analysis and any specific strategy taken.

Disclosure: long tlt