CoT: Peek Into Future Through Futures

The following are futures positions of non-commercials as of October 18, 2016. 10-year note: Both China and Japan reduced their holdings of Treasury notes and bonds in August – the former by a whopping $33.7 billion and the latter by … Continued

Momentum is breaking down, bulls better step up to the plate

posted in: Credit, Derivatives, Equities, Technicals | 0

Rather quick deterioration in momentum in U.S. stocks From sentiment to Greece to $, worrywarts have plenty of things to worry about Next couple of days will be crucial for bulls to step in and try not to let things … Continued

Options market is signaling pressure continues for stocks at least NT

posted in: Derivatives, Equities | 0

Bulls squander opportunity by failing to defend Tuesday’s lows on S&P 500 and Dow Put-to-call ratios just turning up, and have ways to go before they get overbought VIX surges 57% in three sessions; investors seek to protect 2014 paper … Continued

VIX says sky is clear, SKEW says institutions getting ready for clouds

posted in: Derivatives, Equities | 0

VIX:VXV itching to move higher, which could put stocks under pressure VIX suggests calm, but SKEW points to institutions buying tail-risk protection Put-to-call ratios have had extreme readings past several sessions on both CBOE, ISE The S&P 500 Large Cap … Continued

Options market waving green flag to stocks, for now

posted in: Derivatives, Equities, Technicals | 0

Options market at levels consistent with bottom in stocks, at least near-term Signal in midst of several other grossly oversold technical indicators Tone of rally to decide if it is investable or tradable bottom Extreme readings in the options market … Continued

IWM seeks to stabilize around support; probably tradeable short-term

posted in: Derivatives, Equities, Technicals | 0

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

As stocks sell off, NAAIM members essentially already all-in

posted in: Derivatives, Equities, Technicals | 0

Yesterday was the first time since April the S&P 500 Index violated its 50-day moving average – both simple and exponential.  This was the first test since May, yet there was hardly any resistance from the bulls.  Sellers simply overwhelmed … Continued