Tech Rally Propelled By Short Squeeze – For Now, Relief Awaits Bruised Shorts

posted in: Equities, Technicals | 0

Since March lows, large-caps led, and tech led the large-caps.  Short squeeze helped.  Amidst signs of distribution in the Nasdaq 100 the past several sessions, relief likely awaits bruised shorts near term. Shorts have gotten squeezed – for the most … Continued

Loss Of Support On RVX Can Help Small-Cap Bulls, But A Falling Ratio Of Russell 2000 To S&P 500 Looms Large

posted in: Equities, Technicals | 0

RVX is clinging on to support.  A breakdown may help small-cap bulls near term, as the Russell 2000 itself is at/near resistance.  That said, a ratio between the index and the S&P 500 just made a multi-year low. RVX, which … Continued

Major Indices Cling On To Support, Breach Likely, As Are Reversal Odds For Relief Rally

posted in: Derivatives, Equities, Technicals | 0

There is confusion in the markets.  Several times this month, bulls tried to take momentum by the horns, but only to get gored, including last Friday.  Bears have not had a smooth ride either.  Amidst this back-and-forth action, major US … Continued

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

Following futures positions of non-commercials are as of August 20, 2019. 10-year note: Currently net short 401.8k, down 12.5k. The German government Wednesday sold €824 million in zero-coupon 30-year bonds, at a negative yield of 0.11 percent.  It offered €2 … Continued

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

Following futures positions of non-commercials are as of July 31, 2018. 10-year note: Currently net short 590.1k, up 80.6k. The first paragraph of this week’s FOMC statement contains the word “strong” twice and “strongly” once in describing the economy.  This … Continued

Rally Possible – Question Is, Will It Begin Right Around Here Or From Lower Level?

posted in: Derivatives, Equities, Technicals | 0

Major U.S. equity indices are at/approaching their respective 200-day moving average, even as they have pushed into oversold territory. At last Friday’s lows, the S&P 500 large cap index came within 0.03 percent of that average, the Russell 2000 small … Continued

Bulls On Back Foot, Bears’ Growl Getting Louder

posted in: Economy, Equities, Technicals | 0

2134.72. That is the all-time record the S&P 500 Index (1948.86) notched on May 20.  It is possible in the annals of stock market history this high will be viewed with the same level of trepidation/respect as 1553.11 (March 2000 … Continued

Post-Exercise Of Naked Weekly Short Put, Selling IWM

posted in: Derivatives, Equities, Technicals | 0

Small-caps were big laggards last week.  IWM, the iShares Russell 2000 ETF, lost 2.5 percent, versus drops of 1.3 percent for the S&P 500 Index, 1.8 percent for the Dow Industrials and 1.7 percent for the Nasdaq Composite, among others. … Continued