In the latest period, Nasdaq/QQQ shorts went on an offensive. The index/ETF rallied to a fresh high last Friday. Longs are salivating over the jump in short interest as yet another squeeze opportunity. In the past, zealous bears have repeatedly … Continued
Following futures positions of non-commercials are as of July 7, 2020. 10-year note: Currently net long 43.2k, up 12.2k. The 10-year Treasury yield is clinging on to support. It shed four basis points this week to close at 0.63 percent; … Continued
Following futures positions of non-commercials are as of June 30, 2020. 10-year note: Currently net long 31k, up 24.5k. The 10-year Treasury yield cannot break the logjam. Since bottoming on March 9th at 0.40 percent, rates have pretty much been … Continued
Small-caps and large-caps went their own separate ways for a while, with the Russell 2000 peaking as far back as August 2018 and the S&P 500 in February this year. Since the trough this March, they have been on the … Continued
Bulls just wasted a huge opportunity to squeeze non-commercial shorts in e-mini futures. This is coming at a time when the Fed’s balance sheet is no longer growing at a breakneck pace, which stocks cherished earlier. Longs probably wasted a … Continued
Following futures positions of non-commercials are as of June 23, 2020. 10-year note: Currently net long 6.5k, up 17.4k. The Federal Reserve continued to reduce its assets this week. Since rising to a record $7.17 trillion two weeks ago, the … Continued
Following futures positions of non-commercials are as of June 16, 2020. 10-year note: Currently net short 10.9k, down 13.1k. Foreigners are aggressively getting out of the US sovereign bond market. In March and April, they sold $475.6 billion in Treasury … Continued
Following futures positions of non-commercials are as of June 9, 2020. 10-year note: Currently net long 2.3k, up 55.2k. Post-conclusion of FOMC meeting, Fed Chair Jerome Powell Wednesday sought to play down May’s much-better-than-expected jobs report, which showed the economy … Continued
Major US equity indices continue their two-and-a-half-month momentum. Short squeeze helped. As did the Fed backstop. On an FOMC day, Chair Powell’s body language is worth a listen. For equity bulls, there is this thing called the law of gravity. … Continued
Stocks are ripping higher. Sentiment is exuberant. Several technical indicators are extended. The Fed’s aggressive action was a catalyst in March when major US equity indices bottomed. Its asset holdings continue to grow, but the pace of growth has decelerated. … Continued