Having lagged large-caps since March, small-caps have very weak technical underpinnings, and are getting close to a make-or-break level. Non-commercial futures traders have astutely taken advantage of the decline. Watch what they do. It has been a while this blog … Continued
FXI is caught between weak macro backdrop, the Chinese government’s unwillingness to open up stimulus wallet, and deteriorating technical conditions. There is probably more to go on the downside. It has been a month and a half since we last … Continued
Tick, tick, tick. That is the sound of the clock ticking for the first rate hike by the Fed. It is coming sooner than expected. So it seems. Or, is it? At least that is how the market seems to … Continued
As discussed last week that non-commercial futures traders might just once again be ahead of the curve in anticipating market reaction to Thursday’s ECB decision, they indeed were. By Tuesday (last week), they had raised net shorts in euro futures … Continued
Since we got that VIX-spike signal four weeks ago and subsequent signs that equities are regaining momentum, this is the first time we are getting signals that they are worn out – at least near-term. Since the bottom at 1904.78 … Continued
The answer to the question above is a probable yes. Twice since early March this year, small-caps have come under decent amount of pressure. The first was a nine-week, 11-percent decline that began early March, followed by a nine-percent drop beginning … Continued
The expected decline in the euro never came. Back on August 11, it looked like the currency was ready for a bounce. Just a bounce, as long-term technicals were only midway through unwinding overbought conditions hence did not call for … Continued
One more day, and one more post-Great Recession high on the Nasdaq Composite. In fact, the index is at a 14-year high, and yesterday was able to build on Monday’s breakout. There is of course a lot to quibble over … Continued
The Nasdaq Composite (4508.31)has managed to pull off a mini breakout, and is trading above the level identified previously. As a matter of fact, indices/ETFs such as the S&P 500 Large Cap Index and XLF (financials) have convincingly taken out … Continued
In a global survey of 200 institutional money managers, the Bank of America/Merrill Lynch found that the pros are worried about the stock market and are buying protection against a crash. They are worried about geo-political events and about interest … Continued