Market-Watching Diary: The long/short ratio across all accounts for $US is 0.45 (31% long / 69% short), compared with 0.39 one hour ago.
The long/short ratio is a bit like picking sides, but each account gets one vote.
For the record, the total number of long positions and short positions in the entire market is always equal. A long-leaning ratio across all accounts simply means long positions are spread across more accounts, while short positions are concentrated in fewer accounts.
Learning to read indicators isn’t hard. The hard part is sticking to your plan when the market gets really heated.
For reference only. Not investment advice.
The long/short ratio is a bit like picking sides, but each account gets one vote.
For the record, the total number of long positions and short positions in the entire market is always equal. A long-leaning ratio across all accounts simply means long positions are spread across more accounts, while short positions are concentrated in fewer accounts.
Learning to read indicators isn’t hard. The hard part is sticking to your plan when the market gets really heated.
For reference only. Not investment advice.