TRADERS REMAIN NET-SHORT SINCE JAN 07
US 500: Retail dealer information reveals 30.three% of merchants are net-long with the ratio of merchants quick to lengthy at 2.three to 1. The truth is, merchants have remained net-short since Jan 07 when US 500 traded close to 2449.four; worth has moved 11.5% larger since then. The variety of merchants net-long is zero.1% decrease than yesterday and zero.1% larger from final week, whereas the variety of merchants net-short is 7.four% larger than yesterday and 11.1% larger from final week.
For extra in-depth evaluation, take a look at the Q1 2019 Forecast for Equities
S&P 500 PRICES MAY CONTINUE TO RISE
We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests US 500 costs could proceed to rise. Merchants are additional net-short than yesterday and final week, and the mixture of present sentiment and up to date modifications offers us a stronger US 500-bullish contrarian buying and selling bias.
— Written by Nancy Pakbaz, CFA, DailyFX Analysis
Observe Nancy on Twitter @NancyPakbazFX