Volatility has picked up in US stocks. This is a perfect environment for traders who are nimble enough and ready to take ones and twos, quickly locking in what markets give them. It is increasingly becoming clear why stocks began … Continued
The January barometer failed to work last year. This year, if the first session is anything to go by, odds are it will be volatile. Amidst all this, equity bulls should take heart from the fact that in the latest … Continued
It is probably not coincidental that US stocks and Treasury yields peaked together early October. The 10-year rate is right near support and has room to rally near term. This should bode well for equity bulls who last week put … Continued
Here is a brief review of period-over-period change in short interest in the December 3-14 period in nine S&P 500 sectors. XLB (SPDR materials ETF) XLB (49.46) dropped to 47.05 intraday Wednesday before reversing to end the session up 4.5 … Continued
From early October, the S&P 500 is down 18 percent. Important support lies at 2400, or just underneath. Several indicators are at/near panic levels. Risk-reward odds favor unwinding of these conditions sooner than later. There is blood on the Street. … Continued
Following futures positions of non-commercials are as of December 18, 2018. 10-year note: Currently net short 380.8k, down 13k. With pressure growing from diverse quarters, including the White House, to stay pat in this week’s meeting, the Fed went ahead … Continued
For a while now, foreigners have been reducing exposure to US stocks. They have been buying Treasury securities, and it is likely the pace quickens. If so, this will come at the expense of US stocks. In November, the US … Continued
The FOMC meets this week. A 25-basis-point hike is expected, so is a shift to a dovish bias. Watch out if stocks, beaten up the past two and a half months, cannot rally on this, and/or shorts quickly show up … Continued
Following futures positions of non-commercials are as of December 11, 2018. 10-year note: Currently net short 393.8k, up 100.6k. Next week – on 18-19 – the FOMC meets. This is the last meeting this year. A 25-basis-point raise is expected, … Continued
Bulls and bears continue to show up at 2600 and 2800 respectively. The S&P 500 just tested support – successfully. Odds favor a rally here. There is dry powder in money-market funds, even as fear reflected in the options market … Continued