Big Short in U.S. Stocks Needs Watching, Says One Market Veteran
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A large bearish position in U.S. equities that’s been amassed by trend-following funds may prove vital to the next move for stocks, according to a strategist who’s been analyzing markets since the early 1990s.
The S&P 500 Index is now trading within 50 points of its 200-day moving average, a metric that’s proved important when breached in the past for changes in positioning by commodity-trading advisers, known as CTAs, according to an analysis from James McCormick at NatWest Markets Plc.