BAML Notes Significant Short Equity Positions As USD Long Trade Flags

Large speculative traders increased their short positioning in the S&P 500 “to a crowded reading” below two standard deviations of magnitude, a hedge fund monitor report from Bank of America Merrill Lynch notes, as a correlation diversion has occurred with commodities and a long U.S. dollar trade.

BAML notes long / short ratios tipping to short exposure

Considering their technical models, BAML research analyst Jue Xiong and technical analyst Stephen Suttmeier note that equity long / short players are 33 percent net long, which is slightly below the 35 to 40 percent benchmark for long / short ratios. Macro hedge funds have increased their...