S&P 500 (SPX) Correction Triggered the Short Positions’ Increase to $47 Billion by Large Speculators

Peter Smith

There is a surge in activity with every market correction, but now there are much more shorts than usual.

Image Source: Twitter @sentimentrader

Contents

Large Speculators Are Going All-in with $47 Billion Shorts
Recent S&P 500 Correction Fuels the Short Exposure

Large Speculators Are Going All-in with $47 Billion Shorts

More hedge funds and other major speculators have now short traded major index futures than at any other time in the past decade.

According to the @sentimentrader, large hedge funds have short positions of more than $47 billion.

Trading Strategy

Source: The Tradable

S&P 500 (SPX) Insider Selling Hits a Peak, and Insiders Are Not Ready to Buy Yet

This time, insiders guessed very accurately the moment to sell and it coincided with the market peak.

Recent S&P 500 Correction Fuels the Short Exposure

This happened against the background of the market correction over the last time. Even though the correction itself has not yet reached critical levels and the markets remain in positive area after the rapid summer growth.

However, it should be noted that according to the chart, short positions spike every time a drawdown occurs in the market and subsequently declines as the market recovers. However, speculators bet the most on this correction.

#Chart #Market #S&P500 ##SPX

Peter Smith E-mail

Pete is an expert in content creation with a passion for the global economy and equities market.