The rally in stocks from short covering is coming to an end as evidenced by the falling Twiggs Money Flow on all the major indices. I wrote about the Trump short covering rally here. I said a week ago that when we see a negative divergence between the Twiggs Money Flow and the major indices, (Read More….)
Albert writes, “Hi Lance; you had another great show tonight. A couple of questions if you don’t mind. First is, I read on your website that you think STM might be a good long term trade. Aside from margin issues (if one doesn’t buy on margin), do you think it’s still a good long-term stock (Read More….)
Satoshi writes, “I’m short on REGN because I think it’s oversold. Could you give me any tips of how to confirm this or if it’s also in a downtrend that could go Lower? Earnings are due on the 4th, and I want to get out before they release, but I’m expecting it to pick up (Read More….)
I’m so glad I got out of my short position or actually volatility position a day ago when I spotted the Get Shorty trade. What a brutal beheading of Bears. Talk about a Bear fakeout. When I saw institutional traders playing Get Shorty, I knew something was stinky about the idea that everything was so (Read More….)
Never underestimate the utter wickedness of institutional traders. The ‘Get Shorty’ trade is on. The way the trade works is that institutional traders stir up the bearish sentiment in the market by going out in the mainstream media and talking up doom and gloom.
In after-hours trading, they buy S&P futures causing the market to (Read More….)
I went short the S&P 500 today. More precisely, I went long UVXY.
Today’s upward move on the S&P 500 was a pathetic show of force from Bulls. Check out how the Twiggs Money Flow barely moved higher on the chart.
You can see just how pathetic the upward move was today on the (Read More….)
The BOE restarted its QE bond purchases last week, or at least it tried to. The BOE could not find enough bonds to buy.
The first auction on Monday went fine but on Tuesday, the BOE fell £52 million short of its target to buy £1.17 billion in long-dated government debt.
What happened (Read More….)
Matt Smith of ClipperData was on CNBC today, and I started choking in shock over what he said about how oil tankers are building up off Singapore because nobody has enough room to store all the oil.
In the U.S., Matt Smith said, we are seeing an oversupply of gasoline where they are turning gasoline (Read More….)
Short sellers were destroyed today in one of the evilest whipsaw moves this year.
The chart above is Lights Out wickedness:
There’s Something Evil About This Market
The evil comes from the random nature of the intraday market movements. Whether you are a Bull or a Bear, you are losing money in this (Read More….)
The AFP reports they saw a letter from the EU Commission that calls on the EU to suspend structural funds to Spain and Portugal after both have failed to reduce their debt.
Structural funds are used to deal with regional economic disparities within the bloc.
European Commission vice president Jyrki Katainen said, “We remain at (Read More….)
Mainstream financial media is publishing stories about how the market shouldn’t be this high. Watch out folks. Institutional traders have been making a lot of money off of pushing the idea that stocks are going to pull back at any time.
Amateur traders have been taking short positions against the market for more than a (Read More….)
US cotton has exploded higher as speculative hedge funds have moved in. For two years cotton has been trading sideways because of China’s massive dumping of cotton onto world markets.
The WSJ writes…
The government also lowered its estimate for U.S. ending stocks to 4.6 million bales from 4.8 million.
I (Read More….)
China’s yuan is falling rapidly against the U.S. dollar. The USDCNY has hit a shocking 6.6891.
Using the CNYUSD chart, you can better see the massive currency devaluation by the Chinese.
If you are not an FX trader, another way you can benefit from yuan devaluation is to short FXCH.
What has to happen for the S&P 500 next week is a breakout of the 2134.72 resistance level. The 2134.72 resistance level was set back in May of 2015.
The 2135 area is a major psychological resistance level. We need to see this resistance level become support next week.
Next week we want (Read More….)
While markets around the world have bounced back after Brexit, the same can not be said for Italy. Italy became the first victim of Brexit as Italian banks collapsed shortly after the UK voted to leave the EU.
The Money GPS published this video back in March about what a dire situation Italy is in:
The EIA Weekly Crude Stocks report showed crude oil inventories fell -0.9 million barrels in the June 17 week to 530.6 million, the fifth weekly decline in a row.
Falling crude stocks are bullish for oil; however, if you chart the weekly crude stocks report, you will see a pattern emerge.
Crude stocks (Read More….)
As goes Japan, so goes the S&P 500. History shows that the Japanese Nikkei 225 is an excellent predictor of a stock market crash in the US.
The red line is the Japanese Nikkei 225 index, and the blue line is the S&P 500 index. In 2000 and 2008, Japanese stocks turned down and (Read More….)
Folks, it looks like the UK is set to leave the EU.
Bankers and governments around the world are freaking out. Check out this latest warning that a Brexit would be a Lehman moment.
The Bank of England said there were “risks of adverse spill-overs to the global economy” from the 23 June vote and (Read More….)