First Word

COVID-19 UPDATE: Positivity rates at colleges might be lower than local state. Investors abruptly bearish = good risk/reward

Click HERE to access the FSInsight COVID-19 Daily Chartbook.

STRATEGY: The Street has suddenly become very bearish = risk/reward favorable
What happened to the "dip buyer"?  In fact, not only has the dip buyer "left the house" but investors have turned outright bearish.  According to @hedgopia, NDX futures positioning is the most net short since August 2006 (134k contract in 3 weeks).  

- It is an almost overnight reversal of market positioning.

The video in this report is only accessible to members
Source: twitterGranted, the short of NDX futures could be a portfolio hedge (so a fund doesn't have to sell it holdings) but the fact of the matter is, this is a net increase in short positioning.  September has been a terrible month for equities, with volatility rising, leadership influx and the worst month for equities since March 2020. - so a change in views is not surprising.- but to become the most bearish in 14 years?- wut?For those who think there is only bad news ahead from Washington, it seems like there is some hope still for a stimulus package in the coming weeks.  Nancy Pelosi made these comments on a CNN interview Sunday (as per CNBC below) and she wants to forge ahead.  The impetus coming from the moderate Democrats.- this would be a deal before election day which is 40 da...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

More from the author

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)