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
U.S. stocks quickly shake off China- and Greece-induced worries Can bulls use the reversal as opportunity to mount a breakout on Russell 2000? Several technical indicators have room to move higher still before they get overbought Whoa! Some reversal that … Continued
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
Financials have been acting better of late. Since November 20 when XLF, the financials ETF, successfully tested its September 19th high, there are bids underneath particularly large-cap financials. The stocks responded very well to the jobs report last Friday. This … Continued
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
The ratio of VIX to VXV is below 0.80 in early trading today. Early October, it was grossly overbought and was begging us to go long stocks. Now it is the opposite. Near-term volatility has collapsed. In the past, whenever … Continued
Gold bears had big opportunity to push price lower on Monday Technicals acting better, except near-term conditions little overbought How hedge funds were reacting to Friday/Monday action will be a good tell Monday, gold had a solid excuse to melt … Continued
Facing lower earnings, several oil companies already plan to cut 2015 capex U.S. energy sector accounts for whopping one-third of S&P 500 capex Given drop in oil price, ‘15 S&P 500 EPS estimates too optimistic Oil’s sharp drop can reverberate … Continued
My essay was featured in this week’s Evergreen Virtual Advisor of Evergreen Gavekal (@EvergreenGK). The theme is the amount of divergences and disconnects out there and what it could mean for the markets. EVA+11.28.2014
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