MARKET ALERT: Stock Traders Are The Most Bullishly Positioned In Six Years While U.S. Post Worst Holiday Sales Since The Recession, Chinese Rating Agency Puts U.S. On Negative Watch, Richmond Fed Manufacturing Start Contracting AGAIN, And Half of America Expects No Deal.
December 26th, 2012
Stock Traders Are The Most Bullishly Positioned In Six Years
In Late 2006, the S&P 500 futures market traded around 1435 and the commitment of traders was at an extreme net long position. The market fell shortly after only to manage a miraculous rise in the face of hedge funds going bust and an exploding and over-leveraged credit market. In mid-2008, the S&P 500 futures also traded around these levels, from where the epic collapse really began. Six years later, the S&P 500 futures traders are the most bullishly positioned they have been since those heady over-confident days….