Sideways stock market is making traders crazy, but the pain trade is still up

  • 📰 CNBC
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 72%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

In a confusing tape, perhaps the most important thing to realize is how sour everyone is. Sentiment is very negative. And that is a positive.

The American Association of Individual Investors sentiment survey has seen investors who are "pessimistic" in the 35%-45% range for weeks, far above the historic norm. The BofA Global Fund Manager Survey has been extremely pessimistic most of this year. The Commitment of Traders report, which looks at open interest in the S & P 500 E-Mini futures, has indicated very high short interest by non-commercial traders for weeks. We are talking about very high levels.

In the past, during periods when short interest was as elevated as this , the market was typically higher three months later. How much higher? About 4.8% higher, Johnson tells me. "When we have had high short positions like this in the past, we often see the markets move higher," he told me. One of the favorite indicators traders like to use is the "pain trade.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 12. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

EUR/USD: Break below 1.0800 would signal a significant deterioration in market sentiment – INGEconomists at ING note that the EUR/USD pair should hold above 1.08 to avoid significant losses. Watch the pivotal 1.0800 level “This morning, we’ll h
La source: FXStreetNews - 🏆 14. / 72 Lire la suite »