Russell 2000

The Dangerous Season Begins Now

The period of seasonal weakness in the Russell 2000 Index is highlighted in dark blue on the chart. It begins on July 15 and ends on October 27.

High Yield IED

The high yield bond market has come to resemble an IED in the financial markets for investors with risks that are both disguised and highly destructive. Awareness of these risks is the first step toward defusing them.

As The S&P 500 Becomes One Giant ETF, BofA Has Four Major Warnings

As ETFs control increasingly more of the S&P 500, and now account for more than a third of overall stock ownership, Bank of America warns to expect higher single-stock volatility, valuation distortions and liquidity concerns in the coming years, and issues the following four warnings to traders and investors...

"It's A Series Of Rolling Mini-Bubbles"

"As ugly as the Nasdaq looked on Friday, it didn’t reflect a systemic collapse in equities, but the shaking out of yet another hedge fund induced mini-bubble. I have seen this scenario play over time and time again. The trades the hedge funds are most enthusiastic about, are the very ones you should avoid the most."

RBC's Mean Reversion Model Is "Exploding Higher" As The "Rotation" Begins

Amid yesterday's "nothing-burger" from the big-three event risks, the market initially shrugged off any worries. However, as RBC's head of cross-asset strategy, Charlie McElligott notes, "all of the juicy stuff continues to occur under the surface within the US equities complex."