Small-caps have awoken from their slumber. The Russell 2000 is up 6.6 percent in the last three sessions, with a breakout at 2100. Long a laggard versus large-caps, particularly tech, small-caps’ latest outperformance is raising questions as to if this … Continued
As the rally from the lows of October persists, there are fewer and fewer bears around. In the last several months, they have had several opportunities to gain the upper hand, but to no avail. Another opportunity is at hand. … Continued
If Wednesday’s CPI for April cooperates, equity bulls will try to use it to build on last three weeks’ momentum. Major US equity indices have rallied back to just under their all-time highs from March but are giving out signs … Continued
The earnings season is upon us. The bar is low. With the S&P 500 sideways in recent weeks after a massive rally since last October, better results can help the index push through short-term resistance, but building on the gains … Continued
Although it rose 1.2 percent, the Nasdaq 100 essentially went sideways in March. This also offers tech bulls an opportunity to force another breakout. Catalysts are needed. There is, however, a month to go before the leading tech companies report … Continued
Several tech heavyweights, including AAPL and MSFT, report next week. With massive weights in indices such as the Nasdaq 100, their reports will matter. Earnings estimates have held up better than for the S&P 500 index itself. That said, they … Continued
The December 13th Fed pivot lit a fire under risk assets, leading equity shorts to cover and ETF inflows to jump. Flows, however, began to turn negative as the new year began. This does not help the equity bulls, even … Continued
Something is afoot in the bond land – in how bond shorts are viewing things. They have used the sharp decline in the 10-year T-yield post-December 13th FOMC meeting to aggressively go short these notes, betting on higher rates. They … Continued
It is probable the 10-year T-yield has peaked at five percent. In this scenario, a sustained move lower will put shorts, who were heavily betting on higher rates, under pressure to cover. Two weeks ago, the 10-year treasury yield met … Continued
Equity bulls rallied the major US stock indices strongly early last week, but the momentum faded as the week progressed. One of the reasons for this is the lack of potential tailwind coming from heightened bearish sentiment. Equity bulls are … Continued