According to Bank of America Corp., the volume of bearish positions on the S&P 500 futures has boomed in recent weeks and reached levels seen before the 2008 crisis…<\/p>\n
\nAccording to head of market analysis at Bank of America Corp., Mary Ann Bartels, short positions initiated by hedge funds on the S&P 500 futures reached their highest level since June 2008.<\/p>\n
According to the Commodity Futures Trading Commission (CFTC) data, the net short positions totaled $ 25 billion on Aug. 23 against 21.5 billion dollars one week earlier. “The last time we saw such volumes of short positions on the S & P 500, equity markets fell by 46 percent,” warns Ann Bartels. The S & P 500 has fallen 18 percent since April 29 when it reached its three years highest level.<\/p>\n
However, For Ann Bartels and her teams, this sharp increase in short positions could also trigger the beginning of a bull signal. Indeed, short selling, which involves selling borrowed securities, generates profits when sellers buy back the securities at a price below the initial sell price, before returning them to their owner. Thus, some investors may bid up prices by buying shares to cover their short positions.<\/p>\n
According to Mary Ann Bartels, long-short funds who bet on falling or rising shares, reduced their equity exposure from 33% to 31% of their assets. Macro funds, which bet on economic trends, have cut their positions in the S & P 500, Nasdaq-100 and the commodities, and bought back their short positions on emerging markets and on the MSCI EAFE index.<\/p>\n
Market-neutral funds have strengthened their positions on stocks, betting on an increase of 7 to 10%.<\/p>\n
Is it enough to become bullish? Not sure! A report published last week by Investors Intelligence indicates that the weekly bulletins analyzing the stocks\u2019 behavior have become as pessimistic as they were at the beginning of July 2007.<\/p>\n","protected":false},"excerpt":{"rendered":"
According to Bank of America Corp., the volume of bearish positions on the S&P 500 futures has boomed in recent weeks and reached levels seen before the 2008 crisis…<\/p>\n","protected":false},"author":20,"featured_media":20079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1663,1687,1743,1655,1723,1671,1651,2007,2243,1917],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/20081"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=20081"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/20081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/20079"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=20081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=20081"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=20081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}