Fri’s Reversal Plus VIX Spike Reversal Raise Likelihood Of Rangebound Action N/T

posted in: Derivatives, Equities, Technicals | 0

Major US equity indices took a beating last week, but, thanks to Friday’s reversal, they closed substantially off their lows, defending crucial support and the 50-day.  Concurrently, VIX suffered a spike reversal.  It is equity bulls’ ball to lose near … Continued

10-Year T-Yield Breaks Crucial Support, TLT Overbought Near Term

posted in: Credit, Derivatives, Economy, Technicals | 0

The 10-year T-yield not only lost a rising trend line from July 2016 but also decade-old support at 2.62 percent.  TLT has been on a tear, but is overbought; digestion of the recent gains is the path of least resistance. … Continued

Bears Have Momo, But Need Extra To Break 2600 on S&P 500 In Next Several Sessions

posted in: Credit, Derivatives, Equities, Technicals | 0

The S&P 500 hurriedly jumped 6.4 percent in seven sessions.  Impatient bulls essentially handed out shorts an opportunity to once again show up at 2800.  The risk is the downside, but it is likely 2800-2600 remains intact in the next … Continued

IWM – Risks Elevated Medium Term, Coin Toss Near Term

Even though trade tensions particularly between the US and China have heated up, small-caps – supposed beneficiaries of a trade war – have stalled of late.  Medium term, downside risks are huge.  In the very near term, it is a … Continued

Nasdaq 100 Getting Oversold – Turning XLK Credit Call Spread Into Iron Condor

posted in: Derivatives, Equities, Technicals | 0

Risks are building medium- to long-term, but the Nasdaq 100 is getting oversold on the daily chart. After major U.S. equity indices reversed on February 9, tech-heavy indices were the only ones to rally to new highs. The Nasdaq 100 … Continued

Ten-Year Yields Under Upward Pressure, But Not Enough For Major Breakout

posted in: Credit, Economy, Technicals | 0

Ten-year Treasury yields rallied last week to right underneath the top end of a three-decade-old channel.  A breakout has to wait for now. The 13-basis-point jump last week was big, and probably took many by surprise.  At one point, yields … Continued