There was an article on MarketWatch.com on Friday entitled “Why lagging small caps might not bring down the S&P 500.” The title says it all. The story seeks to justify why prevailing weakness in U.S. small-caps is not a cause … Continued
Small-cap shares are lagging. This is no news. Small-caps have been a topic of discussion on this blog several times before. They have lagged their large-cap brethren, the S&P 500 Index, since early March. That was when money started to … Continued
Enough ink has been spilled on how in recent months major indices – and sectors/industries within them – have been diverging from each other. For two and a half months beginning late February/early March, previously risk-on favorites such as solar, … Continued
The Bank of America Merrill Lynch’s July survey of fund managers was out the other day, and shows how lop-sided investor sentiment is at the moment. A net 61 percent are now overweight equities. The reading is highest since early … Continued
The Russell 2000 Small Cap Index fell four percent last week. In the futures market, large speculators could not have ridden it better. They have been net short since early April – by both cutting longs and raising shorts – … Continued
Short interest continues to inch up. By June-end, Nasdaq’s went up 0.6 percent period-over-period to 8.9bn – highest since end-September 2008 – and NYSE’s edged up 0.7 percent p/p to 14.6bn. What is going on in the Naz in particular … Continued
As suggested last week, the Russell 2000 Small Cap Index has met with resistance. The index seems to be putting in a top, at least in the near-term. To refresh, late-February/early March, previously hot, momentum-packed groups such as small-caps, biotechs, … Continued
One of the divergences we have witnessed in recent weeks/months is weak action in small-caps. The Russell 2000 Small Cap Index peaked early March, then suffered a nine-week, 11-percent decline, followed by a rally beginning mid-May. The index still trades … Continued
Options provide a reliable way to measure investor/trader sentiment. The accompanying chart uses two sources – the CBOE put-to-call ratio and the ISEE index, all equity. The former is currently flashing yellow/even red, the latter not quite so. In other … Continued
Crude oil is on the move. Since early April to last week’s high, the Brent has gone up by over 11 percent. The West Texas Intermediate found a trough much earlier – early this year – and until the high … Continued