The major equity indices are building on breakout that took place two weeks ago. This comes amidst already-high valuation multiples and near-record equity allocation by US households. However, with the 2Q earnings reporting season about to get underway, investor sentiment … Continued
Small-cap bulls had to wait three long years to see a new high on the Russell 2000, but they failed to hang on to the gains last week. They have achieved this feat at a time when 2024 earnings are … Continued
Since last October’s bottom, tech has led. How it behaves in the weeks and months ahead will reverberate through the stock market. This week’s downward pressure is coming in the backdrop of exuberant sentiment. After several weeks of giving out … Continued
Large-cap bulls are on the rampage. Sell-side analysts are egging them on, as they continue to lower June-quarter earnings estimates for S&P 500 companies. Some sentiment readings look dangerously elevated. Equity bulls are not taking a break. They have been … Continued
September-quarter buybacks by S&P 500 companies were decent, but the four-quarter total is on a decelerating trend. These companies will probably get an opportunity to buy their shares at a cheaper price next quarter. Investor sentiment is too complacent and … Continued
Stocks have done very well this month, pushing the major equity indices into overbought territory. Several other metrics are extended but not extreme. This should give the bulls an opportunity to continue to ride the momentum, but can they pull … Continued
Several leading stocks such as MSFT and AAPL posted new highs last week and then reversed lower. This took place just ahead of 2Q earnings results and indices such as the Nasdaq 100 and the S&P 500 have had massive … Continued
After a rip-roaring rally since last October’s bottom, major US indices stopped at what could turn out to be make-or-break resistance. Sentiment is not frothy but elevated enough to cause unwinding, and multiples have only expanded since the end of … Continued
Following futures positions of non-commercials are as of April 4, 2023. 10-year note: Currently net short 621k, up 149.5k. The FOMC minutes for the March 21-22 meeting come out on Wednesday. The fed funds rate was raised by 25 basis … Continued
Equity bulls keep wishing for a pivot that keeps eluding. As things stand, bears are probably eyeing the June lows at a minimum. But at some point, the selling needs to be faded as the season turns favorable. No sooner … Continued