SMALL TRADERS INCREASE THEIR BEARISH BETS

As small investors continue to pull money out of equity market funds, small speculators are continued net sellers according to the CFTC.  As has been the case throughout the 60% bull market, small futures traders at the CME have been net short sellers of the S&P 500.  The latest data from the CFTC showed a slight increase in overall bearish positions versus last week’s data.  As a contrarian indicator, this net bearish position continues to point to potential future market gains.

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Cullen Roche

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.

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