Long positioning in US equity futures is at 10 year highs

[vikramaditya]

Pic : JP morgan

Things always get interesting when exposure of leveraged funds is at decadal highs. What are retailers doing ? That will decide the extent to which this rally continues. If they highly net short, more upmove is possible. Whereas if they are long, get ready for some volatility on the downside

[cvs]

@vikramaditya

What are retailers doing ? That will decide the extent to which this rally continues.
If they highly net short, more upmove is possible.
Whereas if they are long, get ready for some volatility on the downside

OK. But, why?

Can you elaborate a bit on how the above predictions are supposed to play-out ?
i.e. how does one thing lead to another?

(what you said above, sounds profound, but it is not quite clear how one causes the other)