S&P 500 Buy Side Positioning Remains Low
Trader Trends: July 2016
By comparing flows and positioning across cash and futures we can see that buy side positioning in the S&P 500 remains stretched to the downside. In particular, CFTC futures positioning data shows that the buy side community (Asset Managers & Hedge Funds) has decreased their net long position in S&P 500 futures contracts from a high net long of +$100bn. at the beginning of 2015 to a multi-year low and net short of -$5bn. During the same period, BofAML buy side clients were net sellers of roughly $78bn. of cash equities excluding corporate buybacks. Both cash equity cumulative flows and equity index futures indicate that the buy side is not positioned for S&P 500 upside.
This content is not research and was not prepared or reviewed by employees within BofA Merrill Lynch Global Research.