Hey, Ross here:
Let’s start the day by looking at an overlooked source of “market fuel”.
Chart of the Day
Take a look at this chart.
It shows hedge funds’ short exposure in U.S. equity macro products like index futures and ETFs.
And what it tells us is pretty straightforward:
Yes, some of that short exposure has started to come off.
But even after the recent covering, hedge funds are still sitting on a very large bearish position.
In fact, short exposure remains near the highest levels of the last five years.
The reason that matters is because short covering can become fuel for the market.
When hedge funds reduce shorts, they have to buy back the stocks or indexes they were betting against.
And that buying can push prices higher – especially if the market keeps grinding up and forces even more shorts to unwind.
A lot of the recent bounce may simply have been hedge funds getting squeezed out of bearish bets.
And importantly, there’s still plenty of short exposure left.
I explain the implications of this below.
Insight of the Day
The “smart money” positioning is priming the market for surprising stock surges
Because there’s still plenty of short exposure by the smart money right now..
It means that, although the path higher may not be smooth from here…
If the market can absorb the geopolitical headlines, there could still be a lot more buying pressure waiting in the wings.
And that creates an environment that is primed for “surprising” stock surges as these shorts get covered.
That’s why in just a few hours at 11 a.m. Eastern…
I’m going LIVE to show you a new strategy for targeting these out-of-the-blue surges.
It has nothing to do with looking at price action.
It’s about looking at something beneath even the price action…
An indicator that could have pointed you to multiple triple-digit gains in both bull and bear markets.
If you want to see what that indicator is…
Then make sure you show up for my live demo.
It’s free, but spots are limited.
So click here to confirm your spot if you haven’t yet…
And I’ll see you in just a bit at 11 a.m. ET sharp. Don’t be late.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
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Customer Story of the Day
“THE best investing and trading experience ever !! Ross and his team go beyond everyone else and make you richer !!”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
