Post-FOMC statement last Wednesday, equities sold off, but only to recover quickly. Investors have been preconditioned to buy the dips, with repeated success. The difference this time is that prospects for higher rates are real. Federal Reserve Chairman Kevin Warsh … Continued
Margin debt hit a new high in January, up $150 billion over four months. Large-cap indices, however, have gone sideways since late October; this is also the case with small caps, but only since early January. Margin debt set a … Continued
S&P 500 buybacks hit a new high in the 12 months to September. Buybacks, along with earnings and margin debt, have been key pillars of support in this bull market. Failure to live up to expectations by even one variable … Continued
Margin debt rose to a fresh high last month and has a potential to keep rising in the next few months, but only if equity bulls manage to defend important support on the major indices in the imminent selloff. FINRA … Continued
Equity bulls and bears are locked in battle. Until a couple of weeks ago, bulls were in the driving seat. Bears have had some opening of late, with increasing odds of more success in days/weeks to come. The sell-side continues … Continued
Last week was yet another week in which equity bears were unable to convert potentially bearish signals into opportunities. Bulls have now rallied the S&P 500 within striking distance of the high from two weeks ago and are sitting pretty … Continued
After multiple attempts, the Russell 2000 has finally pushed through 2300 – on rate-cut hopes. This sentiment is also evident in the recent rise in small-business optimism, although it is not yet translated into increased job openings. Uncertainty remains – … Continued
With index-level short interest near record highs, equity bulls are hoping for a squeeze. But with so much riding on Magnificent 7, which have already rallied big into earnings, the possibility of a sell-the-news phenomenon cannot be rejected outright. At … Continued
IWM short interest is elevated, and margin debt is down from January’s record. Amidst this, there is tariff uncertainty when it comes to fundamentals, likely forcing small-cap traders to put more weight on technicals. IWM (iShares Russell 2000 ETF) shorts … Continued
Through 4Q24, buybacks continued to act as a tailwind, while margin debt fell in February from January’s fresh record. The latter in particular is at risk of continued downward pressure. At the end of the December quarter, US households’ equity … Continued