U.S. stock bears make a comeback, short positions hit a two-year high

time:2022-12-09 21:11:14source:chakarski.com author:Technology stocks
U.S. stock bears make a comeback, short positions hit a two-year high

In the past two months, retail investors have beaten their short positions, and U.S. stocks have rebounded from their historical lows in the first half of the year. Many analysts and investors believe this marks the beginning of a new bull market. However, the enthusiasm among retail investors in U.S. stocks seems to be fading recently, with the S&P 500 falling for the second week in a row, and the S&P 500 has experienced two months after Federal Reserve Chairman Powell "hawked" the Jackson Hole central bank on Friday. worst day ever. Short S&P 500 positions have increased over the past few weeks, with net short positions in S&P 500 futures rising to 260,000 contracts as of last Tuesday, close to June 2020, according to the Commodity Futures Trading Commission (CFTC) the high point. That means traders are upping their bets on a decline in U.S. stocks. Meanwhile, short interest among institutional investors in hot tech stocks has begun to rise, and recent declines in tech stocks suggest that a strong summer rally is stalling. Investors are ramping up bets on a market downturn, a sign of waning sentiment that could herald a return to volatile trading in the first half of 2022, analysts said. Mark Hackett, director of investment research at Nationwide, said the market was skeptical of a rebound in U.S. stocks, and if everyone felt they were in a bear market rally, it would almost become a self-fulfilling prophecy. In addition, analysts and investors expect U.S. stock market earnings to face a new round of pressure in the next few months. According to a FactSet survey, analysts generally expect U.S. stock corporate profits to increase by about 8% this year, lower than in early July. 10%. While short positions in S&P 500 futures point to a bearish outlook for institutional investors, the view among retail investors appears to be more optimistic. VandaTrack data shows that retail investors have seen their purchases of inverse ETFs taper off over the past few weeks. Hackett said that retail investors are actually quite optimistic, and it is actually the pessimism of retail investors that is more likely to cause the market to fall. It is worth mentioning that this week, US stock investors will usher in the latest non-farm payroll report, consumer confidence survey and manufacturing index, while retail giants Best Buy, Hewlett-Packard and Campbell Soup will release new quarterly earnings reports. This article is from Wall Street News, welcome to download the APP to see more
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