Capital.com’s latest client sentiment data points to a clear rotation underway: traders are trimming exposure to US equities and shifting into commodities, particularly precious metals, as market confidence softens.
Over the past week, retail traders have reduced their long bias across all major US indices. Long positioning in the S&P 500 fell to 76% (from 78%), the Dow Jones dropped to 70% (from 79%), and the Russell 2000 eased to 75% (from 80%), with each slipping out of “extreme buy” territory. Even the Nasdaq, which had been heavily long, pulled back to 60% from 68%.
The move marks one of the broadest weekly sentiment shifts in recent months, suggesting traders are starting to take profit or hedge after a sustained rally. In Asia, positioning in the Nikkei also fell sharply from a heavy 70% long bias at the start of last week, following strong price gains this morning.
Meanwhile, flows into precious metals accelerated. Gold sentiment climbed to 81% long (from 77%) and silver surged to 86% (from 80%), both entering extreme buy territory. WTI crude remained near peak bullishness at 90% long, as longs look for a way out after its recent bear trend move.
In FX, traders pared back their longs on EUR/USD (55% from 61%) and GBP/USD (53% from 59%), while flipping to a majority long stance on USD/JPY (55% from a 56% short), hinting at renewed dollar demand.
“Our data shows a classic risk-off rotation,” said Monte Safieddine, Head of Market Research, MENA at Capital.com. “After strong runs in equity indices, traders are taking chips off the table and reallocating toward gold and silver, a sign that caution is creeping back into the market narrative.”
