Mar 24 2008
The Small Traders are Committed to the NASDAQ
According to the most recent Commitment of Traders report, the small speculators took a head-long bullish plunge into the NASDAQ. Based on the figures from March 18, they are now 62% long, the largest bias I’ve seen in a while. Not only that, but they are net long by more contracts now than they’ve been in over a year.
Given that the small players are almost always wrong at the major points, I can’t help but be a bit nervous here. The NASDAQ is trading up into a very interesting zone – one where resistance could quite easily come in. Are we about to see another flush, like the one we saw a couple weeks ago when the small specs were something like 69% long the S&P?
Here are some other posts which might interest you:
