Back in March we asked “what happens when this chart goes to zero” with regard the exuberant lack of bears in the AAII survey. The last 3 months have seen that sentiment morph into actual positioning as institutional investors have been net sellers of US equities since April leaving assets in bear funds at record lows.
As FBN’s JC O’Hara notes, it’s a sign of capitulation when there’s no one left to bet on a decline… and remember margin has already rolled over… meaning the levered longs are unwinding too…
Charts: dshort.com and FBN
via Zero Hedge http://ift.tt/1tFsniZ Tyler Durden