The most recent commitment of traders report (courtesy of Sentiment Trader) shows a massive short accumulation in the Nasdaq 100. If you look at past occurrences their market timing has been fairly good. The current net short position is almost twice as large as any occurrence in the last 5 years. Is the dumb money on the wrong side of the trade or are the institutions about to become fuel for the next leg up?
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.