Following futures positions of non-commercials are as of November 15, 2016. 10-year note: Post-Trump victory, the bond market has swiftly priced in higher inflation. The U.S. economy is in its eighth year of expansion, although growth remains subdued. On a … Continued
Following futures positions of non-commercials are as of November 8, 2016. 10-year note: The 25-basis-point hike in the Fed funds rate last December was the first in nine-plus years. At 0.4 percent, rates are still zero-bound. Growth remains sluggish, but … Continued
Major U.S. equity indices are at/approaching their respective 200-day moving average, even as they have pushed into oversold territory. At last Friday’s lows, the S&P 500 large cap index came within 0.03 percent of that average, the Russell 2000 small … Continued
Following futures positions of non-commercials are as of November 1, 2016. 10-year note: The 10-year yield (cash) has been trapped in a descending channel for the past three decades, having peaked at 15.8 percent in September 1981. From the July … Continued
Last week, the Russell 2000 small cap index dropped 2.5 percent. The decline was much bigger versus what other major U.S. peers were handed out, with the S&P 500 large cap index down 0.7 percent, Nasdaq composite down 1.3 percent … Continued
The following are futures positions of non-commercials as of October 25, 2016. 10-year note: Rates are rising. From 1.34 percent on July 6 this year to 1.88 percent on Friday, the 10-year Treasury yield has come a long way. In … Continued
The following are futures positions of non-commercials as of October 18, 2016. 10-year note: Both China and Japan reduced their holdings of Treasury notes and bonds in August – the former by a whopping $33.7 billion and the latter by … Continued
Equity bears have been rewarded the past couple of weeks, with the S&P 500 large cap index down 1.6 percent. There is likely more reward medium term, but near-term is a toss-up. In the wake of the 2.5-percent drop on … Continued
The following are futures positions of non-commercials as of October 11, 2016. 10-year note: In late September, Janet Yellen, Fed chair, said the bank might be able to help the U.S. economy in a downturn if it could buy stocks … Continued
The following are futures positions of non-commercials as of October 4, 2016. 10-year note: Bloomberg ran a story on Tuesday saying the ECB would probably gradually wind down bond purchases before the end of quantitative easing, and that it may … Continued