Tuesday, July 13, 2010

Commercial Hedgers expecting Market Crash?

OK, the title may be upsetting. But is it even remotely true?

If you look at the above chart. Commercial Hedgers are the players who invest big chunks of money into the market. Since early 2007 until late 2008, these players were quietly hedging against BIG drop. S&P dropped over 50% after that.

Late 2008/early 2009, these same players were un-hedging and their hedges were at the lowest level seen in a while. And what you saw was massive rally of nearly 80%+.

Since early 2010 you see that these same players are Hedging BIG time again. In fact we are very close to the same levels last seen just before the crash of 2008.

Does this indicate, we are about to fall off the cliff? Time will tell.



  1. I noticed the same thing. They are getting everyone all bulled up at the moment. This probably won't end too well.

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