Bulls’ resolve being tested
Major U.S. indices reversed from early strength yesterday. As a matter of fact, it took less than an hour – half an hour in most cases – before things began to turn south. From the S&P 500 large cap index … Continued
Short interest flat past three periods — shorts staying put despite rally
For the past three periods, short interest on both the NYSE and Nasdaq has essentially gone sideways. As of mid-April, NYSE short interest has gone from 15.69 billion to 15.68 billion to 15.66 billion (Chart 1), and on the Nasdaq … Continued
Peek into future through futures
The following are futures positions of non-commercials as of April 21, 2015. Change is week-over-week. 10-year note: Are bond vigilantes expecting a hawkish tone from the FOMC next week? The latter meets on 28-29. For the most part, macro data … Continued
Bear call spread, to benefit from potential pressure on XLE near-term
XLE ($82.22), the energy ETF, seems to want to go lower near-term. Since the mid-January low of $71.22, it has carved out a pattern of higher lows, and higher highs, hence now finds itself in a slightly upward sloping channel. … Continued
Party hard, but dance near exit
Sideways move in stocks – just a pause or sign of fatigue after six-year run? Several different measures point to gradual buildup in complacency over the years Human nature not to want to leave party early, which is fine unless … Continued
Peek into future through futures
The following are futures positions of non-commercials as of April 14, 2015. Change is week-over-week. 10-year note: The 10-year yield fell in all five sessions. Friday could have been different as March core CPI was initially treated as hawkish, but … Continued
Any chance S&P 500 and Shanghai index reestablish once-decent correlation?
Central banks’ increasing role in deciding fate of stocks R between S&P and Shanghai index breaks down due to CB activism N/T direction for U.S. stocks look promising but not M/T, as QE morphine is lacking Did U.S. stocks go … Continued
Spring in financials’ step as they prepare to report 1Q
Despite a down day in stocks in general, financials had a lot of oomph yesterday. KBE continues to hug the upper end of the one-plus-year range it is in (Chart 1), as if the ETF wants to break through resistance. … Continued
Buyback-induced breakouts — signal or noise?
GE stages massive breakout Friday on back of massive buyback announcement S&P 500 companies splurged $565 billion on share repurchases in 2014 As/when buybacks dry up, support zones become more vulnerable Before last week, GE shares had been on a … Continued
End-March short interest: Indices flat, lots of changes industry- and sector-wide
Short interest as of the end of March was flat on an index level, but action was hot and heavy on an industry/sector level. On the NYSE, short interest was 15.68 billion, down from 15.69 billion two weeks ago. On … Continued