Stocks Offer Something For Both Bulls And Bears – Odds Again Favor Latter N/T

The past couple of weeks offered both equity bulls and bears a little something to celebrate.  The bulls got the relief rally, and the bears an opportunity to short.  What next? Since the S&P 500 large cap index peaked on … Continued

CoT: Peek Into Future Through Futures – How Hedge Funds Are Positioned

Following futures positions of non-commercials are as of Aug 22, 2017. 10-year note: Currently net long 261.2k, up 60.7k. Fed funds futures are currently pricing in 40 percent odds of a 25-basis-point increase in December, while September and November are … Continued

Another Relief Rally Likely — Equally Likely Shorts Show Up At Resistance

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From the all-time high of 2490.87 on August 8 through last Friday’s intraday low of 2420.69, the S&P 500 large cap index shed 2.8 percent.  Not much in a big scheme of things.  It is still up 8.3 percent this … Continued

CoT: Peek Into Future Through Futures – How Hedge Funds Are Positioned

Following futures positions of non-commercials are as of Aug 15, 2017. 10-year note: Currently net long 200.6k, down 29.2k. The annual Jackson Hole economic policy symposium – slated for August 24-26 this year – is known for its news-making potential. … Continued

Ray Of Hope – At Least Near Term – For Bruised Volatility Bulls

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The lack of volatility in volatility is once again giving rise to the phrase ‘it is different this time”.  If past is any guide, it seldom is. Spot VIX just created a record. VIX goes back to January 1990.  In … Continued

CoT: Peek Into Future Through Futures – How Hedge Funds Are Positioned

Following futures positions of non-commercials are as of June 27, 2017. 10-year note: Currently net long 302.1k, down 43.1k. Rising asset prices were once again a talk of the Fed town. On Tuesday, Janet Yellen, Fed chair, Stanley Fischer, vice-chair, … Continued

Short-Term Volatility Way Too Compressed To Cause Major Breakout On S&P 500

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Dips continue to get bought, even as volatility struggles to hold on to gains. On the S&P 500 large cap index, bulls forced a break out of 2400 five weeks ago.  Just a few days afterwards, the breakout was defended … Continued

Amid Mixed Volatility Messages, Volatility Curve Is One To Listen To Near Term

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Monday marked a history of sorts. All four major equity indices – the S&P 500 large cap index, Dow Industrials, Nasdaq composite and the Russell 2000 small cap index – broke out to fresh new highs.  The last time this … Continued

Large Specs’ Massive Net Shorts In VIX Futures Contrarian Signal

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Back in 2013, by August 20th, non-commercials had built 116,317 contracts in net shorts in VIX futures.  In the next 10 weeks (by October 29th), net shorts dropped to 39,673 (Chart 1).  Intra-day, spot VIX jumped from 11.83 on August … Continued