Yesterday came news that U.S.-based funds attracted $36.5bn in stock inflows in the week ended December 24 (courtesy of Thomson Reuters Lipper Service). Some thoughts on this: 1. The inflows are simply massive. There is no other way to describe it. … Continued
October 15th bottom in stocks forces shorts to cover in many sectors IWM expends lots of short-covering fuel to approach crucial resistance Nasdaq, NYSE short interest at multi-year highs, can bulls force squeeze? Since stocks bottomed on October 15th, naysayers … Continued
Despite escape-velocity meme, yield curve continues to tighten Message of belly/long end of curve to short-end: be careful what you ask for Financials diverge from 10-2 spread, perhaps setting up as shorting opportunity next month One of the contrarian themes … Continued
On a day when we are enjoying the blockbuster 3Q GDP numbers comes another data point that points to continued sluggishness in U.S. housing. Yesterday, existing home sales disappointed. Sales were lowest since May this year. I even heard one … Continued
10-year notes yielding lower vs when Nov’s blockbuster jobs report came out Large speculators’ net shorts in 10-year-note futures at four-plus-year high Bond vigilantes not buying hopes and prayers of escape-velocity backers Treasury bonds continue to catch a bid. A … Continued
Markit forecast of sub-200k private payroll growth this month a surprise U.S. unemployment claims, near historical lows, need catalyst to begin to move up Oil-heavy states are yet to see jobs impact of drop in crude, but only a matter … Continued
After impressive two-day advance, Russell 2000 on verge of bullish golden cross Potential unwinding of VIX surge of early this week to act as tailwind for stocks In the end, rally nothing but gift for patient bears to short from … Continued
Bears must be scratching their heads over the move by equities the past couple of sessions. Intra-day, the S&P 500 (2041) has managed to rally 3.7 percent. If we must find a catalyst, there are many to choose from – … Continued
Gold fails to generate enough buying interest near important support levels Despite oodles of central-bank printing, inflation remains a no-show 1,180 next line of sand, which is not too far away; must-hold Remember the chart below? This was from Monday … Continued
Market expectations for rate hike next year runs risk of disappointment With monetary quiver nearly empty, Fed very much focused on wealth effect Job even more difficult, given adverse effects of cheap money beginning to loom Markets are sending mixed … Continued