Like Goldilocks, he’s just bullish enough for a long trade idea on SPY, asserts Landon Whaley, Founder and CEO of Whaley Capital Group, in his weekly Trade Idea published on Fridays.

The SPDR S&P 500 ETF (SPY) gained just over 1% in the week ending April 21 but professional money managers may have missed out. Bank of America’s latest Fund Manager Survey showed that fund managers’ allocation to US equities is currently at the lowest level since 2008. As I’ve been saying all year, people are not bullish enough on US equities given the current Fundamental Gravity.

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Despite what the media and recession bloggers would have you believe, there is no “mixed” data.  The acceleration of US growth that started last summer is continuing in spades here in the first four months of 2017. This is the perfect environment for being long US equities.

People are not bullish enough. And, record numbers of investors are flat out bearish. Speculators in the futures markets are shorting US small caps at the highest level in almost three years. How did that work out for those folks last week when the Russell 2000 ripped over 2% higher?

Like Goldilocks, I’m just bullish enough and I’ve got a brand new long trade idea for the week of April 24-28, 2017.

Trade Idea: New long trade ideas can be initiated on a decline to $232.51, or lower. Use a risk price between $231.60 and $226.81.

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