Range-bound action continues on major US equity indices. After defense of support last Thursday, they gapped up Mon to rally right into resistance. No breakout yet. This is taking place in the wake of massive rallies off of the March … Continued
Last week, the S&P 500, Nasdaq 100 and Russell 2000 respectively fell 2.3 percent, 0.7 percent and 5.5 percent. Bulls’ consolation is that the indices were down a lot more at Thursday’s lows and that they were able to defend … Continued
Following futures positions of non-commercials are as of May 12, 2020. 10-year note: Currently net short 151.5k, up 9.2k. On Wednesday, Jerome Powell, Fed chair, provided a gloomy view of the economy, saying the nation was experiencing an economic hit … Continued
Since March lows, large-caps led, and tech led the large-caps. Short squeeze helped. Amidst signs of distribution in the Nasdaq 100 the past several sessions, relief likely awaits bruised shorts near term. Shorts have gotten squeezed – for the most … Continued
Stocks have diverged from sharp deterioration in fundamentals. At the lows, several indicators were at washout levels, resulting in the massive rally that followed. But at this point in time, they may be responding more to the Fed’s monetary backstop … Continued
Following futures positions of non-commercials are as of May 5, 2020. 10-year note: Currently net short 142.3k, up 92.8k. On March 9th intraday, the 10-year Treasury yield made an all-time low of 0.4 percent. On February 6th, yields tagged 1.67 … Continued
The top five stocks report this week. They have rallied massively since March lows. Investor reaction to their earnings will determine if major cap-weighted indices continue their five-week upward momentum or hit the wall. This week, the big five report. … Continued
Following futures positions of non-commercials are as of April 21, 2020. 10-year note: Currently net short 34.1k, down 36.7k. The FOMC meets next week. A two-day meeting begins Tuesday. This comes after March’s hectic schedule which included two unscheduled meetings. … Continued
Following futures positions of non-commercials are as of April 14, 2020. 10-year note: Currently net short 70.8k, up 9.8k. The Fed is on a mission to provide a backstop to a whole host of assets. Here is its report card … Continued
Following futures positions of non-commercials are as of April 7, 2020. 10-year note: Currently net short 61k, up 8k. The Fed continues to spread its policy tentacles. During the financial crisis of 2007-2008, it began to aggressively purchase Treasury securities … Continued