With momentum on their side, equity bulls hope metrics such as money-market funds, margin debt and even foreign buying of US stocks begin to cooperate better. In this scenario, volatility, already suppressed, is vulnerable to another leg lower. Non-commercials are … Continued
Following futures positions of non-commercials are as of November 5, 2019. 10-year note: Currently net short 231.5k, up 115.4k. The 10-year Treasury yield (1.93 percent) bottomed on September 3 at 1.43 percent. Since then, rates have formed higher lows, followed … Continued
The S&P 500 rallied strongly in the past month. Investors Intelligence bulls expanded eight percentage points in the last three weeks. In the options market, investors are taking off protection they bought earlier. Greed has replaced fear. Unwinding is the … Continued
US Manufacturing has contracted for three months now. Markets are not a least bit bothered. They are hoping the Fed’s three rate cuts this year would boost a decelerating economy. In the futures market, non-commercials are betting with record net … Continued
Following futures positions of non-commercials are as of October 29, 2019. 10-year note: Currently net short 116.1k, up 31.7k. As expected, the FOMC delivered a 25-basis-point cut in the fed funds rate this week. This was a third straight cut … Continued
The S&P 500 is itching to make a new high. The Nasdaq 100 achieved that feat last Friday. Lowered earnings estimates for the third quarter went a long way, among others. Bulls have momentum right now. Medium- to long-term, massive … Continued
Following futures positions of non-commercials are as of October 22, 2019. 10-year note: Currently net short 84.4k, down 15.3k. Next week, the FOMC meets. Wednesday, the Fed is expected to ease. Futures traders are betting with a 93.5-percent probability that … Continued
Amid continued signs of macro deceleration, next year’s estimates for small-caps continue higher. The Russell 2000 index, however, is not quite buying this optimism. Last week, it led its large-cap peers, but remains under crucial resistance. Should small-caps come under … Continued
Following futures positions of non-commercials are as of October 8, 2019. 10-year note: Currently net short 122.6k, down 41.1k. The 10-year Treasury yield (1.75 percent) put in a higher low. On September 3, rates fell to 1.43 percent, which was … Continued
Following futures positions of non-commercials are as of September 24, 2019. 10-year note: Currently net short 196.3k, down 33.7k. On September 3, the 10-year Treasury yield dropped to 1.43 percent intraday, nine basis points from the record low 1.34 percent … Continued