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Market Chatter Suggests Investors Are Increasing Allocations to Mid- and Small-Cap Stocks
The chatter says funds are coming out of bonds.
Michael Sedacca    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

We're hearing chatter that says a very large re-allocation trade is occurring, out of bonds and into small-and-mid-cap ETFs, and I'm seeing some evidence to support the talk.

Trading volumes in the SPDR S&P MidCap 400 ETF (NYSEARCA:MDY), the ProShares Ultra MidCap400 ETF (NYSEARCA:MVV) (the 1x leveraged long version of the S&P MidCap 400), the iShares Russell 2000 Index ETF (NYSEARCA:IWM), the ProShares Ultra Russell2000 ETF (NYSEARCA:UWM) (the 1x leveraged long version of IWM), and the iShares Core S&P Mid Cap ETF (NYSEARCA:IJH) are all running at exponentially higher levels than normal and are leading the market. Trading volumes are at average levels for the iShares Core S&P 500 Index ETF (NYSEARCA:IVV) (S&P value stocks) and the iShares S&P 500 Growth Index ETF (NYSEARCA:IVW) (S&P growth stocks).

The suspected outflows are from bonds, but I'm not seeing anything abnormal in the representative ETF proxies, and I'm told that cash volume is not abnormal either. My custom index of municipal bond closed end funds is having a -1.7 standard deviation day, but this is not entirely abnormal given the sell-off in rates. The similar index of credit funds is down, but less than I would have expected.

Twitter: @MichaelSedacca

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Market Chatter Suggests Investors Are Increasing Allocations to Mid- and Small-Cap Stocks
The chatter says funds are coming out of bonds.
Michael Sedacca    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

We're hearing chatter that says a very large re-allocation trade is occurring, out of bonds and into small-and-mid-cap ETFs, and I'm seeing some evidence to support the talk.

Trading volumes in the SPDR S&P MidCap 400 ETF (NYSEARCA:MDY), the ProShares Ultra MidCap400 ETF (NYSEARCA:MVV) (the 1x leveraged long version of the S&P MidCap 400), the iShares Russell 2000 Index ETF (NYSEARCA:IWM), the ProShares Ultra Russell2000 ETF (NYSEARCA:UWM) (the 1x leveraged long version of IWM), and the iShares Core S&P Mid Cap ETF (NYSEARCA:IJH) are all running at exponentially higher levels than normal and are leading the market. Trading volumes are at average levels for the iShares Core S&P 500 Index ETF (NYSEARCA:IVV) (S&P value stocks) and the iShares S&P 500 Growth Index ETF (NYSEARCA:IVW) (S&P growth stocks).

The suspected outflows are from bonds, but I'm not seeing anything abnormal in the representative ETF proxies, and I'm told that cash volume is not abnormal either. My custom index of municipal bond closed end funds is having a -1.7 standard deviation day, but this is not entirely abnormal given the sell-off in rates. The similar index of credit funds is down, but less than I would have expected.

Twitter: @MichaelSedacca

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Market Chatter Suggests Investors Are Increasing Allocations to Mid- and Small-Cap Stocks
The chatter says funds are coming out of bonds.
Michael Sedacca    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

We're hearing chatter that says a very large re-allocation trade is occurring, out of bonds and into small-and-mid-cap ETFs, and I'm seeing some evidence to support the talk.

Trading volumes in the SPDR S&P MidCap 400 ETF (NYSEARCA:MDY), the ProShares Ultra MidCap400 ETF (NYSEARCA:MVV) (the 1x leveraged long version of the S&P MidCap 400), the iShares Russell 2000 Index ETF (NYSEARCA:IWM), the ProShares Ultra Russell2000 ETF (NYSEARCA:UWM) (the 1x leveraged long version of IWM), and the iShares Core S&P Mid Cap ETF (NYSEARCA:IJH) are all running at exponentially higher levels than normal and are leading the market. Trading volumes are at average levels for the iShares Core S&P 500 Index ETF (NYSEARCA:IVV) (S&P value stocks) and the iShares S&P 500 Growth Index ETF (NYSEARCA:IVW) (S&P growth stocks).

The suspected outflows are from bonds, but I'm not seeing anything abnormal in the representative ETF proxies, and I'm told that cash volume is not abnormal either. My custom index of municipal bond closed end funds is having a -1.7 standard deviation day, but this is not entirely abnormal given the sell-off in rates. The similar index of credit funds is down, but less than I would have expected.

Twitter: @MichaelSedacca

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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