S&P 500: Retail Traders Reduce Weekly Long Positions 20%
Only 27% of Retail Traders are Net-Long
Wall Street: Retail trader data shows 27.7% of traders are net-long with the ratio of traders short to long at 2.61 to 1. In fact, traders have remained net-short since Jul 06 when Wall Street traded near 24584.1; price has moved 8.8% higher since then. The number of traders net-long is 6.8% higher than yesterday and 20.3% lower from last week, while the number of traders net-short is 15.5% lower than yesterday and 9.4% higher from last week.
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Current Sentiment is Unable to Provide a Clear Direction
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Wall Street prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed Wall Street trading bias.
--- Written by Jake Schoenleb, DailyFX Research