Pfizer’s positive vaccine news on Monday last week elicited favorable investor response. Moderna’s positive news this Monday generated a lukewarm response. Fatigue is setting in. Major US equity indices are in overbought territory, particularly daily, with several sentiment readings already … Continued
A day before Wednesday’s mini-collapse in major US stock indices, Investors Intelligence bulls reached a multi-week high. Some of these indices are near important support, providing bulls an opportunity to regroup. Longer-term, sentiment remains elevated. Equities took it on the … Continued
Investor sentiment has done a yo-yo in recent weeks – from multi-month highs six weeks ago to the lows of three weeks ago to the week-over-week rise this week. Investment managers are very bullish, retail not quite there but high … Continued
Following futures positions of non-commercials are as of September 22, 2020. 10-year note: Currently net long 82.2k, up 67.4k. Several Fed officials this week stressed on the need for Congress to get its act together and provide fiscal help. This … Continued
Investors Intelligence bulls are down three weeks in a row from 100-week high 61.5 percent to 51.5 percent. Sentiment remains in the optimistic zone. Importantly, this week’s rally attempts were just denied at the 50-day on the Nasdaq 100, which … Continued
Short squeeze of non-commercials in the futures market was a big factor behind the rally in the S&P 500 since mid-June. These traders have now targeted the Nasdaq 100. This has raised tech bulls’ hopes for a squeeze. But conditions … Continued
Sentiment indicators are beginning to come in from elevated levels. This both preceded and followed the latest three-day selloff in stocks. Wednesday, bulls tried to stem the damage by buying. Immediately ahead, VIX is the one to watch. Last week, … Continued
Bears are putting foot down. On both the S&P 500 and Russell 2000, bulls last week were unable to break through multi-year resistance, even as the Nasdaq 100 finished right on rising-channel support from March. All this followed massive gains … Continued
The same way investor fear was pervasive in March, greed is reflected in several metrics currently. Reversal risks are very high medium- to long-term. Near-term, how VIX behaves in the next several sessions will decide if sentiment gets ever frothier. … Continued
Following futures positions of non-commercials are as of August 25, 2020. 10-year note: Currently net long 72.3k, down 14.7k. The 10-year Treasury yield (0.73 percent) is itching to break out of a five-and-a-half-month rectangle between 0.57 percent and 0.74 percent. … Continued