Small-caps get no love, even as large-caps rally to new highs. Non-commercials’ bearish position in Russell 2000 mini-index futures is near an 11-year high. At some point in the future, these holdings can provide a tailwind to the cash, as … Continued
Following futures positions of non-commercials are as of July 16, 2019. 10-year note: Currently net short 347.2k, up 58.4k. In its quest to justify a rate cut later this month, the Fed may be inadvertently creating a precedent that it … Continued
May was rough for US stocks. The S&P 500 large cap index lost 6.6 percent, the NYSE composite 6.1 percent and the Nasdaq composite 7.9 percent. Things reversed in June and July. Through the intraday low on June 3 through … Continued
Foreigners kept selling US stocks in May, but their pace of selling substantially moderated in April and May. Bulls hope this is the beginning of a trend, as foreign buying – or a lack thereof – historically moves hand in … Continued
The sell-side customarily has lowered estimates going into the 2Q earnings season. Stocks have rallied since early June, thanks also to an impending rate cut by the Fed later this month and resumption of trade talks between the US and … Continued
Following futures positions of non-commercials are as of July 9, 2019. 10-year note: Currently net short 288.8k, down 48. In the first stare down with markets since his appointment in February last year, Jerome Powell, Fed chair, blinked. In this … Continued
The S&P 500 index was one of the major US indices to rise to new highs yesterday. The broader market, as represented by the Value Line geometric index, is not taking part in this. In US markets – or any … Continued
Following futures positions of non-commercials are as of July 2, 2019. 10-year note: Currently net short 288.9k, up 7.8k. Fed Chair Jerome Powell appears before Congress this week. This comes on the heels of a strong payroll report in June. … Continued
June’s stronger-than-expected payroll print has the potential to change the Fed’s interest-rate outlook for the remainder of the year. Markets still expect at least two 25-basis-point cuts this year, including one later this month. Should Chair Jay Powell wish to … Continued
VIX this week broke two-month support, opening the door to a test of support at 11-12. Meanwhile, the volatility curve – in contango – is approaching a level that in the past coincided with a peak in stocks. With one … Continued