Sellers take advantage of early-morning strength to sell more stocks Amidst this, transports, high-yields draw buyers; panic noticed in VIX:VXV action Trade could be developing, but given developments in energy space, sustained rally not probable Another ugly day! Could have … Continued
Balance sheets have diverged between Fed and ECB As eurozone economy/inflation fall short, ECB under pressure to do QE If there is no QE from ECB, euro probably has a lot of catching up to do on the upside There … Continued
Economy was probably not reason why QE2/3 got launched, stock sell-off was One month after QE1/2 ended, stocks began to act sick, prompting Fed into action Year-end rally may or may not happen; impending sell-off to test Fed’s pain threshold … Continued
Improvement in gold’s price action in recent sessions Key will be if non-commercials begin to add to net long gold futures Looks to be bottoming, but still tentative; short GLD puts safe way to go for now Gold ($1,187.9) is … Continued
For second week running, hedge funds stayed net long VIX futures Three times since 2009 when this has happened, equities have gone on to rally Ideal scenario: SPX goes lower and successfully tests 1900, just in time for year-end rally … Continued
Shorts continued to raise bets, with short interest at multi-year highs October 15th reversal followed by sharp advance probably caused short-covering With QE gone and broken trendline resistance on S&P 500 intact, shorts could get active again Bulls probably took … Continued
James Bullard’s recent dovish comments fail to ignite interest in gold Possibility of triple-bottom reversal, but needs confirmation With recent thrust waning, near-term bias is down Since its peak in September 2011 at $1,924/ounce, gold has been trapped in a … Continued
2007/2008 crisis fueled by excessive use of leverage Not much learned from that experience as U.S. debt continues to balloon Consistently falling trading volume can create problem even as primary market has gotten bigger As the chart below shows, we … Continued
Shorts added to already-elevated positions on time to take advantage of latest decline in equities Indices in gross oversold conditions, giving bulls opportunity to try to squeeze shorts If shorts resist these pressures well, that signals rockier time ahead for … Continued
Fed has openly discussed benefits of wealth effect; now adds another tool – talking down dollar Six years into recovery post-crisis, U.S. economy yet to witness escape velocity Dovish FOMC message fails to ignite sustained rally in US equities These … Continued