Still Not Enough Bears?

• Posted by Robert Sinn
• on June 12th, 2012

While market sentiment is clearly quite negative, based upon my own anecdotal observations most market participants are content to sit with a heavy amount of cash until the China/Europe fog clears a bit OR until the bottom drops out of this market. Two charts from Deutsche Bank confirm that while the majority of market participants are skeptical they aren’t betting on further downside (shorting) at the same magnitudes that we have previously seen at or near market bottoms:

 

 

While aggressive market participants (CTAs, short biased equity hedge funds, global macro hedge funds, etc.) are positioned net short, most market participants are comfortable sitting with bundles of cash and it is difficult to foresee exactly what it would take for them to move back into equities with any real conviction.

 

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