Large speculators in Russell 2000 futures showing aggression, net shorts highest since June 2011 IWM short interest gradually on decline since end-July, stock seems to find support at 110 Too early to say support will hold medium-term, but a trade … Continued
Expectations of higher US interest rates and stronger economy acting as tailwind behind resurgent $ Sentiment too bullish, reflected in non-commercials’ near-record net longs in US $ futures Safe bet probably is to wait to take the other side of … Continued
Having lagged large-caps since March, small-caps have very weak technical underpinnings, and are getting close to a make-or-break level. Non-commercial futures traders have astutely taken advantage of the decline. Watch what they do. It has been a while this blog … Continued
FXI is caught between weak macro backdrop, the Chinese government’s unwillingness to open up stimulus wallet, and deteriorating technical conditions. There is probably more to go on the downside. It has been a month and a half since we last … Continued
The sun always rises in the east and sets in the west. But in life, things are not always this straightforward. Besides black and white, there is this thing called gray. And in the gray territory, things can get confusing. … Continued
The past couple of days, there has been much talk about deteriorating breadth on the Nasdaq Composite. The index consists of over 2500 stocks, with a combined market cap of nearly $9tn. It turns out nearly half are down in … Continued
Less than two weeks ago, when the S&P 500 Large Cap Index was giving out signs of fatigue, the VIX was giving out signs of stability. The former went on to post a new all-time high early this month, even … Continued
Investors have spoken. Bring up yesterday’s daily chart on AAPL ($97.99), and it is all there to see. Two o’ clock was when sentiment shifted. Post-announcement of products in Cupertino, bulls valiantly rallied the stock nearly five points, seeking to … Continued
As discussed last week that non-commercial futures traders might just once again be ahead of the curve in anticipating market reaction to Thursday’s ECB decision, they indeed were. By Tuesday (last week), they had raised net shorts in euro futures … Continued
Since we got that VIX-spike signal four weeks ago and subsequent signs that equities are regaining momentum, this is the first time we are getting signals that they are worn out – at least near-term. Since the bottom at 1904.78 … Continued