After three months of relentless contrarian bearishness by institutional investors, even as retail investors first, and hedge funds subsequently (latest HF net leverage is 99%-ile) flooded into stocks, large institutions such as vanilla mutual funds and pensions finally capitulated to the Fed which is now openly pushing stock prices higher. In the CFTC’s latest weekly futures data, the amount of net short covering of Emini futures among non-commercial speculative investors exploded, and was the biggest since 2007 and the third highest on record.
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