Caution on the Gap-Up | Trading Apple, SPY

We wanted a bounce today, but the gap-up is less ideal.

Our View

Bonds can't fall forever and neither can the Nasdaq. Along with big declines, comes big short-covering rallies. 

Yesterday's weakness was due to the 10-year note climbing to 1.866%, its highest level in two years, and closing at the highs. As of yesterday's close, the Dow is down 2.7% year to date, while the S&P and Nasdaq are down 4% and 7.3%, r…