To Capitulate or Not to Capitulate?
U.S. equity markets have failed to close higher for six consecutive days now, the longest streak since last year. The public remains a net seller of equity, at least according to services that track the movement of flows in and out of equity mutual funds. Hedge funds have been net sellers of equities in recent days, as both equity-market-neutral and long/short funds reduced market exposure, according to Bank of America/Merrill Lynch. Market-neutral funds are now net short for the first time since February (a scant -1% net exposure), while large speculators rotated out of the Nasdaq 100 and into S&P 500 futures.
The building negative sentiment is once again reflected in the AAII sentiment poll, where bulls slipped to 25% and bears rose above 42% (their highest reading since last October)....496 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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