Chart of the Day - Monday, June 22nd, 2020
June 22, 2020
Today's Chart of the Day was shared on Twitter by David Ingles of Bloomberg (@DavidInglesTV). David points out that non-commercial speculators are the most net-short they've been in nine years. While this may seem bearish at first sight, to us, it suggests that the pain trade remains higher for the S&P 500. This could end up being a nice tailwind for the bulls if the bears begin to unwind this crowded trade. Interestingly, futures traders are aggressively short, while options traders seem to have abandoned fear, as evidenced by the low put/call ratio (not shown). As always, this is just one data point to consider within the context of other evidence.