“Complacency Hits Epidemic Levels”: Traders Have Never Been More Unhedged For Risk-Off Event

Bloomberg TV’s Romaine Bostick has put together a fascinating chart that looks at speculative risk sentiment in the futures market, by summing up net spec exposure in traditional risk-off assets: gold, 10-year Treasuries and the VIX:

The chart speaks for itself, but as Bloomberg’s Michael Regan explains, “the obvious takeaway is that positioning is all on one side of the boat and speculators are woefully unprepared for a major risk-off event, suggesting complacency may be reaching epidemic levels as equities break out to new highs.”

As we noted previously, speculators are record net short Treasuries…

Extremely net short precious metals…


And VIX speculators just can’t help themselves, despite losing an arm and/or leg in February…

As DoubleLine’s Gundlach noted “Massive increase this week in short positions…Could cause quite a squeeze.”

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Author: Tyler Durden

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