Selling SPX500 Akin to Jumping in Front of Freight Train

| 11 april, 2013 | 0 kommentarer

ssi_spx500_body_Picture_15.png, Selling SPX500 Akin to Jumping in Front of Freight Train

SPX500Retail CFD speculators are near their most net-short the SPX500 contract on record, and such incredibly one-sided sentiment suggests that selling at these levels is dangerous.

Trade Implications – Our retail sentiment data shows that the number of orders short SPX500 outnumber those long by an almost-unbelievable 10.6 to 1. Our data shows that such one-sided sentiment often comes at the top of the trend, but we can’t emphasize enough that THE extreme is only clear in hindsight.

As it stands we would equate getting short at these levels as roughly equivalent of jumping in front of a freight train.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Download all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

ssi_spx500_body_1a_4.png, Selling SPX500 Akin to Jumping in Front of Freight Train

View how to automate the high-volatility Breakout2 Trading System via our previous article and webinar recording.

Auto trade the trend reversal-trading Momentum2system via our previous article and webinar recording.

Trade with strong trends via our Momentum1 Trading System and view an archived webinar

Use our counter-trend Range2 Trading system and view an archived webinar guide on automation

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

Taggar: ,

Kategori: Analys från DailyFX

Om skribenten ()

DailyFX från FXCM ger dig dagligen färska tekniska analyser på valuta och råvaror. FXCM är en ledande handelsplattform för trading av finansiella tillgångar med kraftfulla verktyg för alla sorters handel.

Lämna ett svar

Din e-postadress kommer inte publiceras. Obligatoriska fält är märkta *