SPX News by Simon Kazinsky on 07:53 Octuber 11, 2018 EST
The main US indices lost between 3 and 4 per cent of their value in a single session just yesterday, the worst single day since February, but mum and pa' know better and have just had enough, they can't wait to buy into this one in a lifetime opportunity with both hands. At the same time stocks were heading south during Wednesday session, data from several brokers reveal a massive swing on the number of their clients flocking into long bets.
As an example the ratio of long/short traders for one of the major brokers has gone from 33/66 on Wednesday to 50/50 at the time of writing on early Thursday New York time.
Other broker reports the ratio of clients long versus short stands at 63/37.
Retail traders are notoriously wrong most of the time and although the market may now be temporarily oversold the down trend is likely to continue.