TIM Index Shows That Brokers Remain Optimistic

As equity markets saw a mixed performance, institutional brokers continued to remain optimistic going into the Good Friday Holiday, according to data compiled by the Trade Ideas Monitor (the TIM), which is used by more than 4,300 equity sales people,

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As equity markets saw a mixed performance, institutional brokers continued to remain optimistic going into the Good Friday Holiday, according to data compiled by the Trade Ideas Monitor (the TIM), which is used by more than 4,300 equity sales people, sales traders and research analysts at institutional brokerage firms to send trading ideas on more than 13,000 stocks to their clients. Ideas entered into the TIM reflect which direction brokers believe a stock will move over the next 1-3 weeks, on average.

Through the five trading days ended April 9, the FTSE declined 3.4% and S&P increased 2.7%. At the same time, new long trade ideas, as a percentage of all ideas sent to investment managers in real time through the TIM, increased to 68.8% from 58.4% on April 2. April to date is 55.3% and year to date is 56.2%.

The TIM Long-Short Index increased 57.0%, to 2.21 from 1.41 on April 2, another positive sign. The index measures the total number of long ideas compared to the total number of short ideas sent to clients. The higher the index, the more bullish the brokers. At 1.5, brokers are entering two longs for every short. At 0.5, two shorts for every long. April to date the index is 1.33 and year to date is 1.38.

D.C.

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