September-quarter buybacks by S&P 500 companies were decent, but the four-quarter total is on a decelerating trend. These companies will probably get an opportunity to buy their shares at a cheaper price next quarter. Investor sentiment is too complacent and … Continued
Stocks have done very well this month, pushing the major equity indices into overbought territory. Several other metrics are extended but not extreme. This should give the bulls an opportunity to continue to ride the momentum, but can they pull … Continued
Several leading stocks such as MSFT and AAPL posted new highs last week and then reversed lower. This took place just ahead of 2Q earnings results and indices such as the Nasdaq 100 and the S&P 500 have had massive … Continued
After a rip-roaring rally since last October’s bottom, major US indices stopped at what could turn out to be make-or-break resistance. Sentiment is not frothy but elevated enough to cause unwinding, and multiples have only expanded since the end of … Continued
Stocks rallied strong on Monday and Tuesday, and Wednesday’s weakness was bought. Digestion of these gains is possible near term. Medium- to long-term, sentiment remains very suppressed. Some rally that was! From last Friday’s close through Tuesday’s high, the S&P … Continued
This week begins the 1Q21 earnings season. The S&P 500 rallied to a new high last Friday. Sentiment remains elevated. Unwinding is just a matter of time – whether it begins now or in a couple of weeks. The 1Q21 … Continued
Major US equity indices posted new highs last week, but only to reverse and give back those gains. By Friday, the S&P 500, the Nasdaq 100 and the Russell 2000 were all sitting on channel support. Bulls cannot afford a … Continued
US equity indices have had massive gains in the past four months. In the options market, calls heavily outweigh puts – to a point where it is beginning to look dangerously lop-sided. If past is prologue, during such times it … Continued
In the last few weeks, money has moved out of money-market funds which ballooned to just under $5 trillion, but not into stocks. Equity bulls are hoping the so-called cash-on-the-sidelines will find a home in stocks. The problem is, major … 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