I will be honest, I don't know how to read that sentiment indicator. Is the IG Markets sentiment indicator useful/okay to use? I check it every now and then...
IG Reading US 500 70% Short
Would you consider that an extreme bias? Worthy of a squeeze?
Cos it looks like that's exactly what is happening.
Squeeze em til their margins pop.indexes at a (almost an altime) high and more than 90% are short .....yeah, right.....squeez me tight baby
Not jumping your posts (if you thought that) but simply adding to the threads. Anyway some past obs. on the ASXVix. Post GFC anomaly, the average for our Vix is around 16. This linear regression overlay starts at the uptrend in July 2014 with a 2 and a 5 standard deviation. Bit Harry Hindsight but sought of shows the past limits.
View attachment 66745
indexes at a (almost an altime) high and more than 90% are short .....yeah, right.....squeez me tight baby
Joules what is your read on this?
I am thinking this increases the probability of a shake out occurring (before a continuation up)...To get a shakeout we're going to need a sell off in GC.
Typically (from my limited experience) when GC is selling indexes are rising, so I'm thinking to fade the first rally I see in the indexes (FESX) tonight.
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