Bears Put Foot Down Near Crucial Resistance On S&P 500 And Russell 2000, Nasdaq 100 Clinging On To Support

posted in: Derivatives, Equities, Technicals | 0

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

Amidst Current Euphoria, S&P 500 Approaches Potentially Important Technical Level

posted in: Derivatives, Equities, Technicals | 0

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

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

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

Equity Options Lean Heavily Bullish – Matter of When, Not if, Current Greed Gives Way To Fear

posted in: Derivatives, Equities | 0

US equity indices have had massive gains in the past four months.  In the options market, calls heavily outweigh puts – to a point where it is beginning to look dangerously lop-sided.  If past is prologue, during such times it … Continued

After Big Rally, Value-Conscious Investors In Particular Likely Get Tempted To Lock In Gains

posted in: Economy, Equities, Technicals | 0

Last Thursday’s sizable drop in major US equity indices was sudden.  Several metrics were so deep into overbought territory the decline probably did not come as a surprise to many.  The magnitude of it was.  Indices have rallied in the … Continued

Spread Between NAAIM Index And AAII Bulls In Red Zone — Risk-Reward Odds Unfavorable For Bulls, Particularly New Longs

posted in: Equities | 0

NAAIM and AAII bulls do not always move hand in hand.  Understandably so.  They represent two different buying sources.  Currently, they are going their separate ways.  The spread between the two is fast approaching a level that in the past … Continued

In/Leading Up To Seasonally Favorable Period, Greed Takes Over

Major US equity indices continue to attract bids and are trading at fresh highs.  Greed rules, with several metrics at nosebleed levels.  In a seasonally favorable period, crazy can get crazier – at least that is what bulls hope.  How … Continued