“Omega-Trading”: Investor sentiment continues to turn negative as short positions increase.
“Omega-Trading” says that an increasing number of investors are taking up short positions on the world’s major stock exchanges.
Short positions are used by investors who want to profit out of negative movement on a particular exchange and have been used to considerable effect by subscribers to the “Omega-Trading” Trader’s Almanac service.
The most recent success involved a trade recommendation by the firm advising subscribers to take a short position on the FTSE 100 at 5,210 on 24 June. The trade was closed out at 5,050 the next day booking subscribers a healthy profit.
The popularity of this technique has surged as volatility continues to characterize equity markets as speculation mounts that the global economic recovery may be in the process of stalling.
“Omega-Trading” traders said that, in hindsight, they would have rather have held on to the position given that the FTSE plunged to a low of 4,871 two days later but subscribers appeared to be content.
“Omega-Trading” said that its traders were mindful of the fact that bearish sentiment was reaching levels where a turnaround in market direction could be imminent and told subscribers to expect recommendations to take a more positive bias in the coming days.
83 views