Quarter-end Window Dressing or Moral Hazard? The well known quarter-end “Window dressing” by funds and institutional advisors could put artificial pressure to the upside on the markets today. At the same time, since the quarter is anyway big negative one, could it also spark funds to dump losers and/or rotate into “wish list” stocks that (more…)

Advantage None Our models have rejected the daily close above the 2510 level last week and are looking for a daily close above 2560 today to turn mildly bullish. The short term bottom might be in at 2191.86, possibly until the earnings season kicks in in a couple of weeks, but there is no directional (more…)

Choppy, Widened Trading Range Our models have been looking for a daily close above 2510 to adapt a short term bullish bias, which we got yesterday as anticipated but the models are ignoring it now and looking for another daily close above 2510 on Monday for them to turn mildly bullish. The short term bottom (more…)

Shorts Beary Confused? Looks like the traders who were betting on the short side are trapped in the sustained upsurge in the markets, thanks to the fiscal stimulus bazooka and the Fed’s aggressive moves. Even today’s 3.28 million initial jobless claims do not seem to dent the market sentiment (at least not yet), as the (more…)

Short-term Bottom In, Or a Selling Opportunity Unfolding? The fiscal bazooka is now (almost) official! The overnight futures have gone through a wild range with the volatility ticking up. Is this going to be another “buy the rumor, sell the news” or is it a great buying opportunity? Investors seem to lack conviction while hedge (more…)