- The ISI hedge fund survey shows hedge fund net exposure at the lowest level since 2009.
- Individuals have been redeeming money from mutual funds, with $40 billion taken out in a single week.
- Rydex traders are positioned bearishly.
- The COT report shows speculators are net short the indexes.
Market participants as a group have low exposure to the market. At the same time we are seeing numerous share repurchase announcements on a daily basis. If corporate buying can goose the market we can see a performance chase develop. Barring a systemic collapse this market is likely headed higher. While an extremely unbalanced World makes a systemic collapse a possibility, it is a tough bet to make.