Largest Sentiment Swing in a Decade

19 Okt 2020

• Non-Commercial Traders have had a change of heart after closing the largest short position on the NASDAQ in more than a decade. Net positions including options from the CFTC COT Weekly Data now stand at 19,512. This is as a result of short positions falling from 142k to 54k.
  
  
• Traders, mostly retail traders have ploughed back capital into call options, used to position for gains in share prices.
  
  
• Call options for the FAANG stocks have recently increased with the put - call ratio being at it's lowest since March.
  
  
• However, there's weakness showing in the equity markets this Monday as the NQ1! failed to break a strong resistance on the 4H Chart hence unable to continue higher.
  
  I'll be monitoring price action and look out for news that might influence the price. The 0.382 fibonacci level is an area of interest.