Options market is signaling pressure continues for stocks at least NT

posted in: Derivatives, Equities | 0

Bulls squander opportunity by failing to defend Tuesday’s lows on S&P 500 and Dow Put-to-call ratios just turning up, and have ways to go before they get overbought VIX surges 57% in three sessions; investors seek to protect 2014 paper … Continued

Small-caps’ probable path of least resistance remains down

posted in: Derivatives, Equities, Technicals | 0

Laggards since March, small-caps continue to fall behind large-caps With increasing signs of distribution, RUT, IWM face technical hurdles More pressure ahead if/when non-commercials start adding to net shorts Since end-September, large speculators have drastically cut back on their net … Continued

Offensives’ performance last wk trend change or passing Dec phenomenon?

Inability of offensives to take the lead has been a thorn in the side of rally since Oct 15th low Outperformance last week of XLY vs. XLP and HYG vs. LQD sign of trend change? Duel on between seasonally favorable … Continued

Euro cannot catch break, approaches another support

posted in: Currency, Derivatives, Technicals | 0

Ahead of ECB meeting, euro misery continues Draghi under pressure to deliver news of more stimulus Large speculators look tentative and sitting on massive net shorts When early October, FXE, the euro ETF, was unable to hold on to 126-127, … Continued

Small-caps continue to hang back, RUT at important level

posted in: Derivatives, Equities, Technicals | 0

Small-caps continue to lag their larger brethren RUT sitting on three-month resistance, breakout could be crucial Breakout not probable as bulls have already used up plenty of energy past five weeks Enough ink has been spilled over the issue of … Continued

Fade or embrace gold rally? Metal action thus far favors latter

posted in: Currency, Derivatives, Technicals | 0

Gold continues to show improved price/volume action Not-so-good news on Swiss vote probably overcome by Dutch repatriation news Trend-following hedge funds added to net longs in gold futures, by both raising longs and cutting shorts As suggested a week ago … Continued

VIX says sky is clear, SKEW says institutions getting ready for clouds

posted in: Derivatives, Equities | 0

VIX:VXV itching to move higher, which could put stocks under pressure VIX suggests calm, but SKEW points to institutions buying tail-risk protection Put-to-call ratios have had extreme readings past several sessions on both CBOE, ISE The S&P 500 Large Cap … Continued

Gold is bottoming, only question is duration

posted in: Derivatives, Equities, Technicals | 0

Improvement in gold’s price action in recent sessions Key will be if non-commercials begin to add to net long gold futures Looks to be bottoming, but still tentative; short GLD puts safe way to go for now Gold ($1,187.9) is … Continued