Biggs is back-bullish as ever…

Earlier this week Roubini became bullish. We have been waiting for Biggs to show up on our radar screens. Wait no more, Biggs is back. Lack of volume in the market is apparently great. Nobody actually wants to sell stocks, and sellers move higher, while the money on the sidelines desperately must get invovled. The man who was dreaming of huge shorts 20% lower, has now once again increased his bullish bets, in anticipation of this “nobody wants to sell stocks” rally to take out new highs. Warning signals are flashing. From Bloomberg;

“There’s a huge amount of money that has been caught on the sidelines in a market that continues to creep its way higher,” Biggs, the founder of hedge fund Traxis Partners LP in New York, said in a phone interview yesterday. “I interpret it as a positive sign that not much of the potential buying power has been consumed by the advance so far.”

Biggs, who increased bets on stocks in December, said his net-long position in equities is currently about 70 percent. The former chief global strategist at Morgan Stanley said he favors Chinese shares and U.S. technology companies.

“It’s very painful for the money that’s on the sidelines that did not perform well last year and now they’re getting four or five hundred basis points behind the indexes,” he said. “There’s just a lot of money that has gone out of equities, and in the long run that money is going to come back.” (Full must read here.)