The price to sales ratio is an important valuation tool that many investors swear by. The market cap to GDP ratio – essentially a ratio of price to sales – supposedly is a favorite indicator of Warren Buffet. On this … Continued
The following are futures positions of non-commercials as of November 3, 2015. Change is week-over-week. 10-year note: Three prominent Fed officials tried to convince the markets this week that December was in play in earnest. Testifying before the House Financial … Continued
In the past month, as U.S. stocks persistently climbed to high altitudes, air has progressively gotten thinner as far as shorts are concerned. With that said, the action last Friday raises the odds that the latter is about to get … Continued
In the latest reporting period, there was a big drop in short interest on IWM, the iShares Russell 2000 ETF. It dropped 10.1 percent period-over-period to 118 million shares – the lowest since the middle of August. Shorts had been … Continued
The following are futures positions of non-commercials as of October 27, 2015. Change is week-over-week. 10-year note: Once again, the Fed took a pass. Its decision this week not to raise interest rates was expected. What was not expected was … Continued
Turns out short interest was indeed a tailwind for stocks in the two weeks ended October 15th. On SPY, the SPDR S&P 500 ETF, short interest declined 10.6 percent, to 332.1 million (Chart 1). The ETF rallied 5.6 percent during … Continued
Up until Wednesday last week, the hypothetical trade involving a weekly short put on SPY, the SPDR S&P 500 ETF, was going pretty well. Then came the 2.8-percent jump in the remaining two sessions, and the trade began to bleed. … Continued
In markets, rarely does everything move in sync. Some jig, some jag. Some lead, some lag. That is the nature of the beast. But there is something called divergence, which, if it is so stark it is hard to miss, … Continued
The following are futures positions of non-commercials as of October 20, 2015. Change is week-over-week. 10-year note: At the press conference following the ECB meeting on Thursday, when asked by a WSJ reporter as to why the bank is fighting … Continued
Back in early August, China engineered a fall in the yuan. Soon followed investor hand-wringing over whether or not it would be selling its Treasury holdings in order to stabilize the currency. The Chinese economy is slowing, and capital outflows … Continued