S&P 500: Short Positions Climb 9% This Week Despite Strong Earnings
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Retail Traders Stay Net-Short Despite Recent Gains
US 500: Retail trader data shows 31.0% of traders are net-long with the ratio of traders short to long at 2.23 to 1. In fact, traders have remained net-short since May 03 when US 500 traded near 2678.51; price has moved 5.5% higher since then. The number of traders net-long is 1.5% higher than yesterday and 0.2% lower from last week, while the number of traders net-short is 4.3% higher than yesterday and 9.1% higher from last week.
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S&P 500 Sentiment Signals a Bullish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger US 500-bullish contrarian trading bias.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.