After a decent rally in equities last week, this week has on the docket several potentially market-moving events – from FOMC meeting to mid-term elections to China trade. Longs can think of selling some covered calls. Last week, two separate … Continued
Following futures positions of non-commercials are as of October 30, 2018. 10-year note: Currently net short 502.8k, down 41.2k. The 10-year Treasury rate continues to trade in a no-man’s land. Sort of. On October 5, it began retreating after touching … Continued
VIX continues to struggle to take out its high from 13 sessions ago, even as major equity indices dropped to fresh lows yesterday. Non-commercials in the meantime are actively covering their net shorts. At least near term, there is room … Continued
The ongoing selloff in equities has been quick and painful – similar to what transpired in February this year. Back then, once stocks bottomed, they proceeded to rally strongly. Will the current selloff evolve the same way? Too early to … Continued
Following futures positions of non-commercials are as of October 23, 2018. 10-year note: Currently net short 544k, down 71.9k. The 10-year Treasury rate (3.08 percent) shed 12 basis points this week – now down 17 basis points from the intraday … Continued
US stocks are trying to stabilize after a decent drawdown. How things evolve will depend a lot on how margin debt, money-market fund assets and foreigners’ purchases evolve in the weeks/months to come. After a seven-session, 7.8-percent decline intraday between … Continued
After a rough two-week selloff, major US equity indices last week saw both bulls and bears try to put their foot down. The former put up a good show early in the week but the latter grabbed the first opportunity … Continued
Following futures positions of non-commercials are as of October 16, 2018. 10-year note: Currently net short 616k, down 6.5k. Three weeks ago, non-commercials were net short 756,316 contracts in 10-year Treasury note futures – a record. They have since reduced … Continued
US stocks had a good August. The S&P 500 large cap index jumped three percent in that month to 2901.52. Foreigners did not lend a helping hand. Net purchases of US equities by foreigners were minus $16.9 billion in August. … Continued
What a week! Stocks really took it on the chin last week, but by Friday there was some semblance of stability. Several indicators are in deep oversold territory. At least a reflex rally is due. During the carnage over the … Continued