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Forget China, Bonds Spook Stocks

"I'm not saying 'run to the hills,' but sell at the sound of trumpets -- I'm hearing a lot of trumpets," Cody Willard of CL Willard Capital tells Aaron Task on Tuesday's "The Real Story" podcast. "Take something off the table. This may be as good as it gets."

Willard, a longtime contributor to TheStreet.com, says he recently sold shares of Cisco (CSCO) after its big run -- and heavy insider selling, Task notes -- as well as buying puts on Apple (AAPL) to protect big gains in that stock.

Both Cisco and Apple were winners again Tuesday, as were Google (GOOG) and Amazon.com (AMZN) amid a subtle shift back into big-cap tech names, Task says.

This rally is coming as evidence mounts the economy is recovering -- Tuesday's stronger-than-expected ISM Services report being the latest -- and the Federal Reserve is not going to cut rates anytime soon.

That combination has weighed on Treasury prices, sending yields to their highest levels since August 2006. Rising yields do present competition for stocks -- especially dividend payers like Altria (MO), Apartment Investment & Management (AIV) and Exelon (EXC) -- but yields are not yet high enough to truly threaten the bull market, Task says.

In the remainder of the podcast, Task discusses the day's corporate news, including:

  • M&A activity involving Avaya (AV) and Amgen (AMGN), and a "no deal" deal for Openwave Systems (OPWN);
  • Warnings by retailers Bed Bath & Beyond (BBBY) and Cache (CACH), and kitchen cabinet maker American Woodmark (AMWD), which all fell into "the Geoff Tate Zone";
  • Weakness in small-cap biotechs Telik (TELK) and Inovio Biomedical (INO) after separate clinical setbacks, and big-caps DuPont (DD) and General Mills (GIS) after separate sell-side downgrades.
  • Click here to listen to the entire podcast.

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