Traders Capitulate On Long Rates, Short VIX Positioning Into Election

Authored by Simon White, Bloomberg macro strategist,

The net long position of speculators in short-term US rates and the net short in the VIX has been reversed heading into this week’s US election. The market also remains long stocks and bonds, and has begun to get very long in silver.

The general advice for this election has been to lighten up risk as the distribution of outcomes is wide – as it has been whenever Trump has been a candidate in the race. That by and large appears to be what has happened, although with some notable changes of direction.