Bulls Scorn Last Week’s Potentially Bearish Candle On S&P 500, Even As Investors Intelligence Bears Hit 6-Year Low This Week

posted in: Equities, Technicals | 0

With two more sessions to go this week, last week’s potentially bearish candle is not yet confirmed on the S&P 500. Concurrently, the bullish view continues to gather momentum as the ratio of Investors Intelligence bulls to bears crossed four … Continued

For Improving Investor Sentiment To Continue Into Frothy Territory, Need Cooperation From Flows, Which Continue To Disappoint

posted in: Derivatives, Equities | 0

Investor sentiment is elevated. This is also evident in the CBOE put-to-call ratio and in VIX. Fund flows, however, continue to remain anemic even though the S&P 500 has rallied north of 20 percent from last October’s lows. Unless fund … Continued

Equity Bulls Positioning For Seasonal Strength; Core PCE This Week, Inflation-Focused Fed Meets Middle Of Next Month

It is a seasonally strong period for stocks. Bulls are wasting no time getting ready for this. Stocks are rallying. In the best of circumstances, there is room to run still, with the caveat that an important inflation report is … Continued

After Massive 3-Month Rally, Russell 2000 Trading Within Narrow Range; Immediately ahead, Test Of Lower Bound Likely Lies Ahead

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After a massive rally in the past three months, the Russell 2000 is tracing out a consolidation pattern.  Investor optimism remains very high.  For continuation of the uptrend, money-market funds likely hold the key.  Barring their cooperation, bulls will have … Continued

Sentiment Witnesses Rapid U-Turn From Greed To Fear, Raising Odds Of Bear Market Rally

posted in: Derivatives, Equities | 0

Investors Intelligence bulls fell further this week, with bears jumping to an eight-plus-year high.  The options market, too, shows fear has set in.  Odds of a bear market rally have grown. Investors Intelligence bulls further fell this week, down 4.5 … Continued

Risks Growing Lagging Small-Caps End Up Pulling Leading Large-Caps Lower

Markets have been in dichotomy, with large-caps leading and small-caps lagging.  Bulls were hoping the former would pull the latter along.  But risks are rising things will evolve the opposite way.  It is early, but subtle signs of fatigue are … Continued

Bulls Grow Their Ranks Further, Risks Rising Could Pull Back Horns

posted in: Economy, Equities | 0

For the first time in 29 weeks, the Investors Intelligence bulls-to-bears ratio crossed three.  Having come after a nearly 26 percent rally in the S&P 500, this likely is not the beginning of a trend. Investors Intelligence bulls jumped three … Continued

Some Potential Green Shoots From Money Markets, Although Foreigners Send Different Message

There was a massive drop in money-market assets last week.  This is a potential green shoot should this continue, although bulls could not quite cash in on it last week.  The mother of all potential green shoots – foreigners – … Continued

Investors Intelligence Bulls Probably Right Not To Get Giddy

posted in: Equities, Technicals | 0

Despite the massive rally in stocks since December lows, Investors Intelligence bulls are not giddy, though NAIIM members are not quite sending the same message.  Ditto with the percent of S&P 500 stocks above the 50-day. Investors Intelligence bulls continued … Continued

Equity Indices Eyeing Fresh Highs – Trader Reaction To Earnings Key

posted in: Derivatives, Equities, Technicals | 0

Major equity indices are within striking distance of fresh highs.  Bulls hope the low hurdle in 1Q19 earnings helps put volatility under more pressure.  Trader reaction to earnings is key. Major US equity indices are a stone’s throw away from … Continued