Unknown Extent of Unwinding
The US market is obviously oversold with the ConnorsRSI reading on the three main indexes showing readings below 15. What is unknown is the extent of the unwinding that is occurring by some of the biggest macro names in the hedge fund industry who are bailing out of their high beta stocks and covering their short positions in emerging markets. Brazil and Turkey both up nearly 20% in a month – really?
Once these funds are done unwinding expect to see the US rally higher.
Today’s Potential Opportunities on Further Pullbacks: