CTAs are short $52 billion in U.S. equities, the largest short position in more than 5 years.

On Monday, 6 November, the Nasdaq rose for the seventh straight day, its longest winning streak since January 2023, while the Dow and S&P 500 gained for six consecutive days for the first time since July and June this year, respectively.

CTAs are currently short $52 billion in U.S. equities, the largest short position in over five years. CTAs are currently short $134 billion worth of global equities, the largest short position in 5 years.

They were short an aggregate of 25 billion U.S. equities on 30 October 2023, at an S&P level of 4194 / Dow 33053. They have since doubled down on a losing position.

Energy stocks and oil look pretty ugly

On writing this short read (7 November, 7 a.m.) WTI Crude (Dec′23) was trading at 79.50 USD. Both - energy stocks and spot oil - look as if they have reversed course, moving significantly lower.

The USO ETF, mimicking spot oil prices, broke its upward trend in early October. There is support at the 75 USD level. Given recent price action, a move to the 70 USD level, significant trendline support, seems likely.

The S&P 500 energy sector chart looks pretty ugly to me, too. There have been five tops at around the 700 level in recent years. The upward trend was broken in early October, too. There is support at the 650 level; a move to the 600 level seems likely to me.