There was an article on MarketWatch.com on Friday entitled “Why lagging small caps might not bring down the S&P 500.” The title says it all. The story seeks to justify why prevailing weakness in U.S. small-caps is not a cause … Continued
Enough ink has been spilled on how in recent months major indices – and sectors/industries within them – have been diverging from each other. For two and a half months beginning late February/early March, previously risk-on favorites such as solar, … Continued
How quickly the pendulum has swung the other way. When we last discussed signals coming out of the options market, the CBOE in particular was giving out signs that equities were itching to go higher. Nearly a month ago, the … Continued
Non-commercial futures traders’ bet in recent weeks on a declining VIX was spot-on. Toward the middle of March, these large speculators were net short a mere 1k contracts. VIX (spot) was around 15 at the time. Technically, there was room … Continued
Equities are acting confused – almost schizophrenic – not able to make up mind whether they want to move up or down. They have been on a roller-coaster ride lately. An active trader could not be asking for a better … Continued
Are we there yet? Have we yet reached the escape velocity? You know the 6.96 miles-per-second speed needed to break free from the gravitational pull of the earth. I am of course figuratively referring to the prevalent expectations that the … Continued