The Fed eased. This was expected. Chair Powell suggested it is not going to be a long rate-cutting campaign. This was unexpected. US equities took it on the chin Wednesday, and look vulnerable, particularly if bulls are unable to defend … Continued
Large-caps keep making new highs. Should small-caps, which currently sit at crucial juncture, manage to break out, risk-on sentiment can get a tailwind, driving several indicators – already extended – to dangerously extended territory. US equity indices keep making new … Continued
Following futures positions of non-commercials are as of July 23, 2019. 10-year note: Currently net short 380.2k, up 32.9k. Next Wednesday, the Fed will have eased, probably by 25 basis points to a range of 200 to 225 basis points. … Continued
Small-caps get no love, even as large-caps rally to new highs. Non-commercials’ bearish position in Russell 2000 mini-index futures is near an 11-year high. At some point in the future, these holdings can provide a tailwind to the cash, as … Continued
Following futures positions of non-commercials are as of July 16, 2019. 10-year note: Currently net short 347.2k, up 58.4k. In its quest to justify a rate cut later this month, the Fed may be inadvertently creating a precedent that it … Continued
Following futures positions of non-commercials are as of July 9, 2019. 10-year note: Currently net short 288.8k, down 48. In the first stare down with markets since his appointment in February last year, Jerome Powell, Fed chair, blinked. In this … Continued
The S&P 500 index was one of the major US indices to rise to new highs yesterday. The broader market, as represented by the Value Line geometric index, is not taking part in this. In US markets – or any … Continued
Following futures positions of non-commercials are as of July 2, 2019. 10-year note: Currently net short 288.9k, up 7.8k. Fed Chair Jerome Powell appears before Congress this week. This comes on the heels of a strong payroll report in June. … Continued
Investors increasingly are hiding in large-caps. The S&P 500 large cap index Monday reached a new all-time high, while the S&P 600 small cap index closed Tuesday 16 percent off its all-time high from last August. Stocks are rallying but … Continued
Following futures positions of non-commercials are as of June 25, 2019. 10-year note: Currently net short 281.1k, down 121.9k. Since peaking at 3.25 percent last October through the intraday low seven sessions ago of 1.98 percent, the 10-year Treasury yield … Continued