Are bears going into hibernation
26 July 2010 London
Image: Shutterstock
Data Explorers has launched the Long Short Ratio. This new set of analytics enables fund managers to track bearish sentiment in assets of interest and is available in the Data Explorers Excel Toolkit.
The Long Short Ratio drops when short sellers are adding to their positions and rises when they take profits and head for the exits. Recent declines in short interest across global equities reveals a continuing decline in bearish sentiment.
Will Duff Gordon, Senior Research Analyst, Data Explorers commentated: "Our Long Short Ratio is at a two-year high and indicates that short sellers are now taking money off the table. Perhaps the bears are going back into hibernation?"
The long short ratio for global equities stands at a two year high of 9.5 from a short term low of just under 8 in April. Over the past 2 years, it has risen from a low of 5.75 (in September 2008). Equity short selling is significantly below the levels seen two years ago and at just over USD630bn, is somewhat short of April's peak of USD800bn, which coincided with the peak in global equities.
The Long Short Ratio drops when short sellers are adding to their positions and rises when they take profits and head for the exits. Recent declines in short interest across global equities reveals a continuing decline in bearish sentiment.
Will Duff Gordon, Senior Research Analyst, Data Explorers commentated: "Our Long Short Ratio is at a two-year high and indicates that short sellers are now taking money off the table. Perhaps the bears are going back into hibernation?"
The long short ratio for global equities stands at a two year high of 9.5 from a short term low of just under 8 in April. Over the past 2 years, it has risen from a low of 5.75 (in September 2008). Equity short selling is significantly below the levels seen two years ago and at just over USD630bn, is somewhat short of April's peak of USD800bn, which coincided with the peak in global equities.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
