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The Market Ear on the running of the bulls.
Everybody bearish has either died or left the trade
We went bearish on the 15h of February and bought puts on the S&P500. Even though that is just 6 trading days and 1.2% ago it feels like we now are in a complete different world – post apocalyptic – for bears. We felt “contrarian smart” when we put on the trade, now we feel less convinced as the “AI glory glory hallelujah” theme seems to have limitless upside. However, here is a run-down of the sentiment & positioning observations that still would support a bearish thesis.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.