The net long positioning on the Nasdaq 100 by asset managers and leveraged funds is at a record high
When a trade becomes this crowded, how long until things reverse course? Source: Rosenberg Research
Nasdaq has now listed 0DTE Options (Zero Days to Expiry) for ETFS tracking silver, gold, oil, natural gas, and treasuries. Let the games begin! 🎰
Financial Times >>> "Trading in a controversial type of derivative known as “zero-day” options is spreading to Treasury and commodity markets, as Nasdaq and other exchange groups try to replicate a boom that has transformed trading in US stock indices. Nasdaq this week listed a series of new options contracts tracking some of the most popular exchange traded funds investing in gold, silver, natural gas, oil and long-term Treasuries. Options contracts give investors the right to buy or sell an asset at a fixed price by a given date. Trading a contract on the day it expires is known as zero-day trading and can be used to bet on or hedge against extremely short-term market moves. Zero-day trading in options tied to the S&P 500 index boomed in popularity during the coronavirus pandemic. Initially viewed as a temporary phenomenon driven by speculative retail traders, the surge sparked concern among some analysts and regulators that it could create systemic risk by exacerbating market moves. Source: FT, Barchart
The Nasdaq 100 and S&P 500 ETFs are now less than 2% below their all-time high while the Russell 2000 ETF (small caps) is 24% below its high and the ARK Innovation ETF is 71% below its high
Source: Charlie Bilello
8 straight day higher for Nasdaq and 7 straight for S&P - the longest winning streaks since Nov 2021...
Source: Bloomberg, www.zerohedge.com
Nasdaq 100 dropped 1.9%, now down 11% from Jul high, so Big Tech now in correction territory
It looks like some P/E air is being let out of the Magnificent 7 bubble... Source: HolgerZ, Bloomberg
We have not seen NASDAQ move lower with $BTC exploding to the upside in a long time
Source: TME, Refinitiv
China’s Nasdaq-Style Index falls to record low:
Star 50 index, which tracks manufacturers, chipmakers & biggest comps on Star Board, falls to lowest since its inception >3yrs ago as investors’ confidence wanes. Set for 6 straight mths of decline. Source: HolgerZ, Bloomberg
The relative Nasdaq 100 bull does not care about no rates moving higher...
Source: TME, Goldman Sachs
