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.
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.