Bets Against The Share Market Swell to The Highest Level Since 2011

Traders of US equities have made their position clear. Confidence in the share market in now at a 12 year low. 

With some news headlines using this as an indicator that ’It’s a great time to buy’; we’re more of the opinion that due to higher interest rates and very average economic data that Traders’ current attitude to equities could be spot on.

Economic data over the last week is increasingly looking like certain parts of the US economy are broken (or close to breaking point). Here are some highlights.

– CPI March 0.2% (previous month 0.4%). This means inflation is being tamed.

– CPI YoY 5.1% (previous 6%). This also means inflation is being tamed.

– US retail sales March -0.5%.

– US retail sales minus Autos March -0.4%.

– US Factory orders -0.7%

– Construction spending Feb -0.1% (Previous 0.4%)

So, connecting the dots, we have US traders now shying away from equities and consumer spending planted in negative territory. Yes, inflation is starting to come down, but at a very high expense. With much of the above data directly influencing consumer spending and sentiment, it’s not surprising we continue to see Gold and Silver perform well.

*Not financial advice, please do your own research prior to any investment decisions you make.

30 days of gold pricing (USD)

30 days of silver pricing (USD)

Market Sentiment

30 Day Google trend positions for ‘Gold Price’. Stable and strong at 74/100

Twitter sentiment 7 days

Tweets around Gold Price eased from 26,070 to 24,490 over the past week.