S&P 500 : Net-Short Positions Continue to Increase
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NUMBER OF TRADERS NET-SHORT INCREASED BY 12.3% FROM LAST WEEK
US 500: Retail trader data shows 24.5% of traders are net-long with the ratio of traders short to long at 3.08 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2340.73; price has moved 23.2% higher since then. The number of traders net-long is 0.6% higher than yesterday and 0.3% higher from last week, while the number of traders net-short is 4.2% higher than yesterday and 12.3% higher from last week.
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S&P 500 SENTIMENT SUGGESTS A BULLISH TRADING 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 Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @ NancyPakbazFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.