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SMALL SPECULATORS REMAIN BEARISH

29 December 2009 by Cullen Roche 4 Comments

The latest data from the CFTC shows continued bearishness by small speculators.   The latest net bearish reading shows a drastic improvement over the December 15th data, but still shows the net bearish position that small speculators have maintained throughout the rally from the March 8th lows.  Viewing this data from a purely contrarian position the indicator continues to look bullish heading into 2010.

Source: CFTC

Cullen Roche

Cullen Roche

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Comments
  • vfsvfl

    Thanks for this snapshot. It strikes me that this data was totally unreported throughout this 9-month rally…

    12/29/2009 at 4:50 AM
  • BGray

    Are small specs equivalent to retail investors?

    12/29/2009 at 8:18 AM
  • crosscreek

    This data is not corroborated by CME futures, which have commercials heavily net short, especially with NDX futures.

    12/29/2009 at 4:43 PM
  • GreenAB

    looks like the dumb money is back in the game.

    IG corporates weakening along with treasuries.
    and very slowly melting HY spreads can´t compensate falling treasury prices any longer.

    so it seems that average joe finally threw in the towel and decided to take a chance on stocks again.
    and logically they buy the sector that has fallen the most and seems to promise most upside potential.

    see:

    US Equity Fund Inflows Hit 79-Week High: EPFR

    http://www.cnbc.com/id/34619533

    12/30/2009 at 12:34 AM