S&P 500 Rallies To New High Last Thu; Tech’s Participation Should Help Build On Momentum

posted in: Economy, Equities, Technicals | 0

The S&P 500 posted a new record last Thursday; otherwise a laggard this year and March in particular, the Nasdaq 100 too reclaimed its 50-day. Continued strength in tech should reverberate through the rest of the market, particularly market cap-weighted … Continued

S&P 500 Itching To Break Out At 3950s, Whether Or Not It Will Sustain Will Depend On If Nasdaq 100 Repairs Damage It Has Sustained

posted in: Economy, Equities, Technicals | 0

Indices are beginning to diverge. Last week, large- and small-caps posted new highs, but tech struggled to put its act together. This is taking place at a time when sentiment is no longer as effusive as several weeks ago. If … Continued

Buy The Dip Or Sell The Strength? It Depends

posted in: Credit, Economy, Technicals | 0

Fed chair made it clear last week that things have not deteriorated enough for them to act. In this atmosphere, the 10-year rate can head toward two percent. Equities, in all probability, will not like that, even though they are … Continued

Amidst Elevated Optimism And Record Margin Debt, Investor Reaction To 4Q Results From Top 6 Companies This Week And Next Telling

posted in: Derivatives, Equities, Technicals | 0

Post-earnings stock reaction to the leading US financials has been negative. Ditto with how INTC and IBM were treated. This week and next, the top six companies report. Amidst elevated investor optimism and surging margin debt, reaction to their results … Continued

Raising Distribution Risks, Pros Slightly Pull Back Enthusiasm, Retail Still Gung-ho

posted in: Derivatives, Equities, Technicals | 0

After persistently remaining elevated for several weeks, investor sentiment is coming under pressure a little. Assuming institutions began distributing, retail would not be able to mop up all the supply. Record margin debt then becomes front and center. Equity bulls … Continued

Hoping Overbought Gets More Overbought, Traders Positioning For Santa Rally

posted in: Credit, Derivatives, Equities, Technicals | 0

With investor sentiment elevated and help from the Fed, margin debt and foreigners, major US equity indexes remain near highs. Bulls are positioning for a Santa rally, followed by the onset of 4Q earnings season in the first half next … Continued

CoT: Peek Into Future Through Futures, How Hedge Funds Are Positioned

Following futures positions of non-commercials are as of October 13, 2020. 10-year note: Currently net long 75.3k, up 5.7k. After taking a one-month pause through early July, the Federal Reserve once again is accumulating assets. In the week to Wednesday, … Continued

A Lot Has To Go Right For Tech Bulls Who Are Hoping For Short Squeeze Of Non-Commercials

posted in: Derivatives, Equities, Technicals | 0

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