Long & Short Mutual Funds Ratio

March 1, 2009 through March 31,2011

 

This chart has not been updated since the January 25,2011 posting...

This chart is from March 2009 to the present...

It is the ratio of the market cap in long funds divided by the market cap in long funds plus the market cap in short funds...

Note that this ratio is currently higher than the level it was in April 2010 before the market corrected into July 2010 and it is currently back at the same level it was in February 2011 before the market corrected into March 2011...

This does not mean that the market has to correct now, it can advance from here, but, we should exercise some caution...

Note that the market will always do what the market wants to do...

It will always try to influence investors to buy near the top and sell near the bottom...

We are still holding our long position from the Trend Following Buy Signal of March 24,2011 and we will wait for a new signal before we reverse our position... 

 

Past performance is not indicative of future results.