Hey, Ross here:
Friday saw another new high for the major indexes.
That’s not unexpected.
And yet – there’s a lot of money betting on a drop.
Take a look below.
Chart of the Day
This chart shows how three groups of traders are positioned against the market (whether long or short).
- Large Speculators (blue): Hedge funds and CTAs (commodity trading advisors) – the “big money” speculators.
- Commercials (red): Dealers, banks, and institutions – the hedgers. They’re usually positioned opposite the speculators.
- Small Speculators (yellow): Retail traders and smaller accounts.
Right now the large speculators (blue) have built up the largest short position against the stock market all year.
Given how richly valued the market is right now, I can’t say I’m surprised.
So the question is – does this mean we’re poised for a dramatic fall?
Far from it.
In fact, that large short position the speculators have built up?
They could actually work to our advantage instead.
I explain how below.
P.S. Tomorrow evening, I’m releasing my next edition of 2 Trades in 2 Minutes. It’s completely free – but you need to get on the SMS list for priority access. So text the word “trade” to 87858 and get those trades sent to your mobile the second they’re released.
Insight of the Day
That large speculator short position could counterintuitively fuel the market rally instead
I wouldn’t be surprised if we see a bit of a pullback in the coming weeks.
As I showed you last week, historical data tells us that, when the Fed cuts at market highs…
It’s perfectly normal for us to see choppy action in the month after.
Combined with such a large short position against the market, we could very well see the market pull back in the coming weeks.
But once we extend the time horizon out, the picture becomes increasingly positive.
I don’t expect a crash anytime within the next year.
And with at least two more Fed cuts on the way…
That means that, pretty soon, those shorts will be forced to cover their positions…
Which would just throw fuel on the market rally.
That’s something we can use to our advantage.
And later this afternoon at 1 p.m. Eastern…
I’m going LIVE to break down exactly what I see on the horizon…
As well as to show you a high upside/low risk strategy that’s previously yielded returns like 287%… 542%… and 806% – all in a matter of weeks or even days.
So click here to guarantee your seat for my live breakdown if you haven’t already…
And I’ll see you in a few hours at 1 p.m. ET sharp.
P.S. This is a completely SEPARATE session from my live YouTube session happening at 9AM ET later this morning.
That one will be more of me breaking down the market, and it’s completely open to the public.
The 1PM live session is invite only – and I’ll be revealing one of my top money-making strategies for the market… something I would never do on a public YouTube.
Customer Story of the Day
“Ross is very honest and makes sure you understand what he is reviewing. If you ask a question in the chat box, he WILL answer it and review the specific stock answer. Ross is one of the best to learn from.
Thank you, Ross. I can see why you left Wall Street. You are helping real customers in the real world.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
