There was very little change this week in the S&P 500’s commitment of traders report. Small speculators reduced their short positions marginally, but remain heavily net short. As a contrarian indicator this report continues to spell potentially bad news for the bears. The small speculators have missed the entirety of the March 2009 rally as institutions have increased their bullish positions. We continue to see small speculators on the other side of this trade.
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.