Spot Gold Clinging On To Recent Breakout

There is a lot of excitement among non-commercial futures traders about spot gold’s prospects.  In the 12 weeks since February 9th through May 3rd, they nearly tripled net longs in gold futures – from 98,428 to 271,648 contracts – to … Continued

Mar 09 Broken Trend Line Resistance Holds on Russell 2000, M- To N-T Support Lost

Versus large-caps, small-caps inherently suffer from shorter operational history, less access to capital, lower trading liquidity, lack of support from most mutual funds, lack of familiarity, lack of/less Wall Street research, and what not. Understandably, they are regarded as risky.  … Continued

S&P 500’s Rejection At May 2015 Downtrend Line Important Development

The S&P 500 large cap index lost 1.3 percent last week.  Intra-day, off the April 20th high through last Friday’s low, it is now down 2.8 percent.  The index retreated after unsuccessfully trying to break out of a declining trend … Continued

FXE Covered Put Instead Of Covering Short

The April 21st European Central Bank (ECB) governing council meeting was anti-climactic. The deposit rate on lenders’ reserves parked at the central bank was maintained at minus 0.4 percent.  As well, Mario Draghi, ECB president, continued his oft-repeated ‘all policy … Continued

S&P 500 Caught Between Squeeze Fuel Running Dry And Imminent Golden Cross

With five sessions to go in April, the Nasdaq 100 index (4474.19) is down 0.2 percent, while the Russell 2000 small cap index (1146.69) is up 2.9 percent.  Last week made a big difference, as the former was down 1.5 … Continued

Repercussions If WTI Is Able To Build On Monday’s Huge Intra-Day Reversal

Quite an anti-climax!  Sunday’s Doha oil talks, that is.  Even more so is how markets reacted on Monday. The much-hyped and much-hoped-for agreement for an output freeze/cut failed to materialize.  Crude oil had rallied strongly into these talks, so a … Continued

S&P 500 Stages Yet Another Breakout — Although Feebly — Likely Wouldn’t Hold

In early April, the S&P 500 (2080.73) is rejected by a July 2015 declining trend line.  After a subsequent slight pullback, the index reenergizes itself and goes for that resistance again.  Last Thursday, it succeeds (Chart 1).  But is the … Continued

8% Rally Past 4 Months Brings FXE Right Up To Crucial Resistance – Shortable N/T

posted in: Currency, Derivatives, Technicals | 0

From the euro’s perspective, March 10th was an interesting session. Mario Draghi, ECB president, pulled out his big bazooka that day.  All interest rates were cut.  The existing QE was expanded from €60-billion/month in purchases to €80 billion.  And the … Continued