What Is The "Pain Trade"?

Takeaway: Pain Trade in US Stocks = #on

Pain Trade  is the one that the largest % of market participants are not positioned for.

What Is The "Pain Trade"? - z 99

One very important way to listen to where the crowd is positioned is in futures and options contract terms. Before yesterday’s (and this morning’s pre-market futures) ramp, here’s where non-Commercial CFTC futures/options NET positioning stood:

  1. SP500 (Index + Emini) net SHORT position of -40,978
  2. The 3 month avg net position = +13,092 (net LONG)
  3. The 6 month avg net position = +31,930 (net LONG)

Click to enlarge.

What Is The "Pain Trade"? - 04.21.15 chart