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
Macro news is bad. Earnings revision trend continues lower. Yet, stocks continue higher. Besides the liquidity push from the Fed, help is also coming from overzealous shorts. On the macro front, news is bad – from employment to capacity utilization … Continued
Overbought on the daily timeframe, major US equity indices are right at, or near, the upper bound of the recent trading range. Volume has dried up, and bulls are staying put, hoping for a breakout. Should one come about, there … Continued
Following futures positions of non-commercials are as of May 12, 2020. 10-year note: Currently net short 151.5k, up 9.2k. On Wednesday, Jerome Powell, Fed chair, provided a gloomy view of the economy, saying the nation was experiencing an economic hit … Continued
Two weeks after breaking out of 1250s, the Russell 2000 (1233) is back below it. IWM shorts never bought into the breakout. They were probably driven more by the sharp deterioration in small-business profit trend. Longs will be on the … Continued
Since March lows, large-caps led, and tech led the large-caps. Short squeeze helped. Amidst signs of distribution in the Nasdaq 100 the past several sessions, relief likely awaits bruised shorts near term. Shorts have gotten squeezed – for the most … Continued
The top five stocks report this week. They have rallied massively since March lows. Investor reaction to their earnings will determine if major cap-weighted indices continue their five-week upward momentum or hit the wall. This week, the big five report. … Continued
Intel (INTC) reports later today. This is coming at a crucial time as far as where SMH (VanEck Vectors Semiconductor ETF) is situated. Texas Instruments’ (TXN) results were received favorably Wednesday, with the stock up 4.8 percent. It accounts for … Continued
Unless a coronavirus vaccine is miraculously developed at record time, a V-shaped recovery in the economy is not probable. Yet, stocks seem to be anticipating one. The Fed is flooding the system with liquidity. Stocks have rallied massively off of … Continued
NYSE and Nasdaq short interest jumped mid-March, to multi-year highs. Bears could not have ridden the latest crash in stocks any better. At the same time, bulls this week defended crucial support on both the S&P 500 and Russell 2000, … Continued