The Russell 2000 Wednesday broke out of 1450s, although bulls were forced to retest the breakout in the very next session. Wednesday’s low-volume breakout comes against the background of a collapse in small-cap earnings this year and elevated optimism next … Continued
In the latest period, Nasdaq/QQQ shorts went on an offensive. The index/ETF rallied to a fresh high last Friday. Longs are salivating over the jump in short interest as yet another squeeze opportunity. In the past, zealous bears have repeatedly … Continued
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
Range-bound action continues on major US equity indices. After defense of support last Thursday, they gapped up Mon to rally right into resistance. No breakout yet. This is taking place in the wake of massive rallies off of the March … 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
Stocks have diverged from sharp deterioration in fundamentals. At the lows, several indicators were at washout levels, resulting in the massive rally that followed. But at this point in time, they may be responding more to the Fed’s monetary backstop … Continued