S&P 500 Rally in December far from Guaranteed
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
SPX500 –Retail CFD speculators remain heavily short the SPX500 contract, which tracks the fair value of the S&P 500 futures price. A contrarian view of crowd sentiment has left us bullish for some time now, but a significant week-over-week shift in crowd positions suggests stock price gains may slow.
Trade Implications SPX500 – December is most often a great month for stocks, and as such it’s difficult to call for a meaningful S&P 500 correction. Yet retail long interest in the SPX500 has surged nearly 50 percent since last week while short positions are down 20 percent. Suffice it to say it seems risky to join crowds in buying the most recent S&P 500 dip as the trade seems increasingly popular.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.