TRADERS REMAIN NET-SHORT
US 500: Retail dealer knowledge reveals 24.6% of merchants are net-long with the ratio of merchants quick to lengthy at three.07 to 1. In truth, merchants have remained net-short since Jan 07 when US 500 traded close to 2473.53; value has moved 11.9% increased since then. The variety of merchants net-long is 1.7% increased than yesterday and 1.6% decrease from final week, whereas the variety of merchants net-short is 5.2% increased than yesterday and 63.three% increased from final week.
For extra in-depth evaluation, take a look at the Q1 2019 Forecast for Equities
S&P 500 SUGGESTS STRONG BULLISH BIAS
We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests US 500 costs might proceed to rise. Merchants are additional net-short than yesterday and final week, and the mix of present sentiment and up to date adjustments offers us a stronger US 500-bullish contrarian buying and selling bias.
— Written by Nancy Pakbaz, CFA, DailyFX Analysis
Comply with Nancy on Twitter @NancyPakbazFX