... The Mexican Peso!
Yes, that's the most consensus long position in all of global macro. The Chart of the Day below is a table of Wall Street's top net long and short positions ranked by Z-score.
"For those of you who are new to learning about our rate-of-change process," writes Hedgeye CEO Keith McCullough in today's Early Look, "... When something is scoring a plus or minus +/- 2.0x on a 1-year z-score AFTER the price has ripped or collapsed, it’s usually a good time to start doing the opposite."
(Note: Without getting too into the weeds on Z-scores, we basically take the CFTC's data on big institutional investors' futures and options contract positioning and compare those contracts to the average over the trailing twelve months to get a sense of how bullish or bearish Wall Street is versus historical positioning.)
In other words, with a Z-score of 3.84, Wall Street is super bullish on the peso. Another interesting contrarian exposure (that Wall Street is currently long) is short the euro. We see growth slowing in Europe through the third quarter of 2017.
