Financials will start reporting 3Q results pre-open tomorrow. From May’s low, KBE has rallied into potentially crucial resistance. A breakout can trigger short squeeze. KBE short interest just shot up. The September-quarter earnings season is upon us. Customarily, financials will … Continued
With XLF (SPDR financial ETF) short interest near a multi-month low and the Treasury yield curve continuing to come under pressure, U.S. financials are acting weak, even breaking down. Back in March this year, XLF unsuccessfully tested the prior high … Continued
Stocks of major U.S. banks and brokers are behaving in a way that shorts are probably not very happy with. Should they treat this as a signal or noise? The top six have reported September-quarter results, and it is a … Continued
Is the Fed about to make a mistake? Post-FOMC meeting yesterday, the Fed’s ‘dot plot’ suggested a majority of policymakers were leaving the door open for two rate hikes in 2015. After the release of the statement, TLT, the iShares … Continued
Major U.S. indices have lost October 2014 trendline Other medium- to longer-term trendlines and support zones are intact Since trendline break is not in isolation, rather across indices, worth paying attention to Five weeks ago, the S&P 500 Index (2094.11) … Continued
Bears point to action in transports to drive point home Bulls cite how financials are acting to prove why bears are wrong VIX remains pinned by 15, bullish (financials); VIX past 15, bearish (transports) Much ink has been spilled over … Continued
The following are futures positions of non-commercials as of June 2, 2015. Change is week-over-week. 10-year note: Yields have decisively broken out of a five-month downtrend channel. The only question is what triggered this. To quote the Beige Book: “The … Continued
U.S. financials continue to send conflicting signals. As important a sector as this one is, what happens next probably will hold clues to a whole host of things, ranging from what lies ahead for the U.S. economy to where interest … Continued
S&P 500 retraces 161.8 percent Fib extension of Oct 07-Mar 09 decline Transports not in sync with Dow/S&P 500, having broken several support levels Having spent lots of buying power of late, SPX shows signs of fatigue; pullback odds rising … Continued
A month ago, KBE, the SPDR S&P Bank ETF, looked on the verge of a breakout (more here). Here we are, one month later, the ETF has indeed broken out. It has the potential to be a major breakout, as … Continued