Equity Bulls Stare At Squeeze Opportunity, But Odds Of Success Low Right Here And Now

posted in: Derivatives, Equities, Technicals | 0

Non-commercial futures traders are heavily on the short side. They can get forced to cover or get squeezed if equity longs had their way. It is not going to be easy for the latter. Having already spent a nice bit … Continued

After Decent Rally In Recent Weeks, Sellers Get Active At Resistance On Major Equity Indices; Mar CPI On Wed

posted in: Economy, Equities, Technicals | 1

Ahead of Wednesday’s March CPI and after a nice two- to three-week rally, sellers show up at important resistance on major US equity indices. With the daily in overbought territory, the bias is to the downside near term. Trader expectations … Continued

Bulls Last Thu Denied At Top End Of Recent Range On S&P 500 And Russell 2000 – Again

posted in: Derivatives, Equities, Technicals | 0

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

Longs Waste Opportunity To Squeeze Shorts

Bulls just wasted a huge opportunity to squeeze non-commercial shorts in e-mini futures.  This is coming at a time when the Fed’s balance sheet is no longer growing at a breakneck pace, which stocks cherished earlier. Longs probably wasted a … Continued

Russell 2000 Perking Up – Lasting Or Not Likely Gets Decided By Non-Commercials

Small-caps have sprung back to life in recent sessions. Since peaking at 1514.94 on October 5 through the intraday low of 1454.17 last Wednesday, the Russell 2000 small cap index (1503.40) shed four percent.  It was a slow drip-drip move … Continued

Divergence Galore – Risk-Off Sentiment Reflected In Small-Caps, High-Yield

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

There is divergence in the markets.  Tons of it. Large-caps are going one way and small-caps the other.  Ditto with transports and high-yield. The Russell 2000 small cap index peaked on 1514.94 on October 5, before trending lower in a … Continued

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

Following futures positions of non-commercials are as of Oct 10, 2017. 10-year note: Currently net long 192.6k, down 39.6k. Market participants constantly rerate expectations.  They have to.  The related variables are dynamic and constantly changing themselves. The nimble ones are … Continued