We Were Ready To Increase Our Short - Then These Charts Showed Up
The selloff thesis meets an inconvenient set of charts
We have written extensively over the past few days about stretched positioning, euphoric sentiment, and why equities increasingly look vulnerable to a pullback. So we almost spit out our coffee this morning when these updated positioning charts landed on the desk. Positioning analysis is messy by nature — there are always conflicting signals. But these six charts all point in the same uncomfortable direction for bears: perhaps positioning is not nearly as extreme as many feared. Does it change our short-term pull-back thesis? No. But it for sure reduces conviction.