Traders Sentiment Turns Bearish For 2011

SARASOTA, Fla., June 15, 2011 /PRNewswire/ -- MoneyShow.com, the largest multimedia investment education destination for investors, traders, and financial advisors announced the results of its most recent Traders' Sentiment Indicator on its Web site. The results revealed that 36% of active traders are bullish, 41% are bearish, and 23% have a neutral outlook about the S&P 500 between now and the end of 2011.

In a significant change since the last Sentiment Indicator in February, traders who short the market indicated they will do so more frequently with 28% stating 26-50% of their trades will be short sales. In February, that number was just over 22%. Also, in the February survey, 54% of traders expected to see the Fed raise interest rates at least once in 2011. Now, in June, 70% expect the Federal Reserve will not raise rates before the end of the year.

Stocks and options emerged as the trading vehicles of choice, with more than 56% of traders expecting those trades to be the most profitable for the duration of the year. In February, 31% of traders felt the dollar would fall moderately in relation to other currencies. Now, more than 41% feel the same way.

Traders also believe gold prices will rise with 58% stating the precious metal will rise by less than 25% while 6% of traders believe it will rise more than 25%. In perhaps the most dramatic change since the last sentiment indicator in February, 40% of traders currently believe the economy will worsen from here, whereas in February only 18% felt the same way.

The MoneyShow.com Traders' Sentiment Indicator polled active traders from its member list between June 6 through June 10. The complete findings of the Traders' Sentiment Indicator are now available on MoneyShow.com.

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SOURCE MoneyShow.com