In the latest period, Nasdaq/QQQ shorts went on an offensive. The index/ETF rallied to a fresh high last Friday. Longs are salivating over the jump in short interest as yet another squeeze opportunity. In the past, zealous bears have repeatedly … Continued
Small-caps and large-caps went their own separate ways for a while, with the Russell 2000 peaking as far back as August 2018 and the S&P 500 in February this year. Since the trough this March, they have been on the … Continued
Following futures positions of non-commercials are as of June 23, 2020. 10-year note: Currently net long 6.5k, up 17.4k. The Federal Reserve continued to reduce its assets this week. Since rising to a record $7.17 trillion two weeks ago, the … Continued
In the last few weeks, money has moved out of money-market funds which ballooned to just under $5 trillion, but not into stocks. Equity bulls are hoping the so-called cash-on-the-sidelines will find a home in stocks. The problem is, major … Continued
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
Major US equity indices continue their two-and-a-half-month momentum. Short squeeze helped. As did the Fed backstop. On an FOMC day, Chair Powell’s body language is worth a listen. For equity bulls, there is this thing called the law of gravity. … Continued
Stocks are ripping higher. Sentiment is exuberant. Several technical indicators are extended. The Fed’s aggressive action was a catalyst in March when major US equity indices bottomed. Its asset holdings continue to grow, but the pace of growth has decelerated. … 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
After massive rallies since the lows of March, major US stock indices saw sellers show up later last week at/near important resistance. Some indicators made a quick switch from fear to greed. This is coming at a time when the … 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