COT: Peek Into Future Through Futures

The following are futures positions of non-commercials as of August 4, 2015.  Change is week-over-week. 10-year note: Federal Reserve Governor Jerome Powell told CNBC on Wednesday that he has not made up his mind yet on whether interest rates should … Continued

In Wake Of Huge Tuesday Reversal, Short Put On IWM

posted in: Derivatives, Equities, Technicals | 0

U.S. small-caps have been through a lot in recent months.  Chart 1 says it all.  Will that change following Tuesday’s huge reversal? Since the Russell 2000 Index (1224.6) broke the mid-October 2014 trend line toward the end of April, it … Continued

Cash-Secured Put Probably Better Suited Than Bullish Risk Reversal For IYT

It has been a while the transports sector has acted like a sick puppy.  Yesterday’s action is a welcome change. IYT, the Dow Jones Transportation Average ETF, peaked November 28th last year at $166.55 – much earlier than other major … Continued

Cash Secured Put On TLT (20+ Treasury Bond ETF)

It is an understatement to say that trading in Treasury bonds was volatile last week – just check out the action on various yields. From intra-day low to high, the 10-year yield swung 20 basis points, but closed out the … Continued

With powerful reversal yesterday, stocks’ path of least resistance up N/T

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U.S. stocks shake off early weakness before carving out major reversal Bulls step up to plate, refuse to give away support zones on major indices VIX and ISEE index suggest stocks’ path of least resistance probably up N/T If you … Continued

Gold is bottoming, only question is duration

posted in: Derivatives, Equities, Technicals | 0

Improvement in gold’s price action in recent sessions Key will be if non-commercials begin to add to net long gold futures Looks to be bottoming, but still tentative; short GLD puts safe way to go for now Gold ($1,187.9) is … Continued

Bulls have baton, bears hot on heels

posted in: Equities, Technicals | 0

Bulls desperately need to retake 200-dma on S&P 500 Potential unwinding of oversold technical conditions can act as tailwind Failure to build on Wednesday’s hammer reversal pattern will mean rockier times down the line Last week, we discussed the significance … Continued