Large speculative traders increased their short positioning in the S&P 500 “to a crowded reading” below two standard deviations of magnitude, a hedge fund monitor report from Bank of America Merrill Lynch notes, as a correlation diversion has occurred with commodities and a long U.S. dollar trade. BAML notes long / short ratios tipping to short exposure Considering their technical models, BAML research analyst Jue Xiong and technical analyst Stephen Suttmeier note that equity long / short players are 33 percent net long, which is slightly below the 35 to 40 percent benchmark for long / short ratios. Macro hedge…
BAML Notes Significant Short Equity Positions As USD Long Trade Flags
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.