Is the Stock Market Set for a Slight Pullback? Or worse?

By Brad Lamensdorf and John Del Vecchio It’s Déjà vu all over again! Levered loans are back! Ever since the global financial meltdown, levered loans have been on the rise. Loan issuance is now near the highs of the last peak. Before the market imploded. This is a serious warning sign not to be ignored….

Buy-back Blackouts Could Be Trouble For The Stock Market. Last week’s chart highlighted the fact that over the last several years corporations have been the dominant buyers in the market. In a few weeks, the corporate buyback blackout period will commence. Corporations are restricted as to when they can purchase. This restriction is based on when each…

Stock Market Leverage is at Dangerous Levels.  As the chart below from Advisor Perspective’s Jill MIslinski shows investor negative credit balances in margin accounts these days dwarf the negative balances that preceded  big market declines of  the last ten years.  Why should we worry about that?  Stock drops precipitate margin calls from brokers.  These drops…

The appetite for IPOs is a fascinating study in sentiment. In all the market changes over the decades, that has been one constant. Three years ago, we saw that sentiment was so skittish that it had been months since an IPO had priced above its indicated range. By October 2018, not only had the market…

By John Del Vecchio and Brad Lamensdorf Small speculators are partying like it’s 1999. Not since the Internet Bubble has option activity from small options traders, those trading 10 contracts or less, has been so speculative. The chart below, courtesy of SentimenTrader, shows the put-to-call ratio nosediving. The result, with this call buying activity, is…