Following futures positions of non-commercials are as of October 9, 2018. 10-year note: Currently net short 622.4k, down 117.8k. Back in July 2016, the 10-year Treasury rate (3.14 percent) bottomed at 1.34 percent. Since then, it has made higher lows. … Continued
The 10-year Treasury rate has broken out. In less than two months, it has jumped 44 basis points. Equities are selling off. But how sustainable is the rise in these yields, given the leverage in the system? Chart 1 is … Continued
Here is a brief review of period-over-period change in short interest in the September 17-28 period in nine S&P 500 sectors. XLB (SPDR materials ETF) XLB (55.70) fell out of a slightly rising ascending channel last week. This preceded rejection … Continued
US stocks took it on the chin last week. Large-caps held up better, but risk aversion was seen elsewhere. The Dow Industrials was essentially unchanged, and the S&P 500 large cap index lost one percent. The tech-heavy Nasdaq 100 index … Continued
Following futures positions of non-commercials are as of October 2, 2018. 10-year note: Currently net short 740.2k, down 16.1k. Kudos to non-commercials for having doggedly remained bearish on 10-year Treasury notes. They reaped a bumper crop this week. In September … Continued
The 3Q18 earnings season begins in earnest next week. Small-caps have sold off big into this (more on this here), but not large-caps. The Dow Industrials Wednesday rose to a fresh high, although the session produced a candle with a … Continued
IWM is breaking down, losing one after another support. Amidst this, the daily is grossly oversold. A bounce can happen – or not. This perhaps creates an opportunity for a non-directional trade involving options. Small-caps are taking it on the … Continued
Next week, 3Q18 earnings season gets underway. Estimates are a little lower than when the quarter began. This should help companies meet/beat numbers. Elsewhere, year-over-year growth in 2018 estimates has peaked. Historically, this has had repercussions for the S&P 500. … Continued
Following futures positions of non-commercials are as of September 25, 2018. 10-year note: Currently net short 756.3k, up 71.6k. Markets versus the Fed. Odds of a collision next year continue to rise. Post-FOMC meeting this week, the dot plot kept … Continued
Here is a brief review of period-over-period change in short interest in the September 4-14 period in nine S&P 500 sectors. XLB (SPDR materials ETF) XLB (59.40) short interest is at an eight-month high. On September 20, the ETF was … Continued