Hedge funds are shorting the
VIX again at a near record level. Don't forget what happened last time they did this. It was October 2017.
Non-commercials, who are now at the other extreme, continue to bet that volatility remains suppressed. Last week, they added 7.8k week-over-week to take their net shorts to 177,754 contracts – a new record (Chart 4). The prior high was recorded in October 2017. When stocks began to sharply correct in January-February and October-December last year, these traders’ net shorts were much lower. This is a dynamic equity bulls should not take their eyes off of.
Just because VIX net shorts are at a new record, stocks do not have to begin to correct right here and now. But with each tick higher, risks of unwinding rise. This suggests a surge in the cash is a matter of when, not if.
SOURCE: hedgopia.com
Non-commercials, who are now at the other extreme, continue to bet that volatility remains suppressed. Last week, they added 7.8k week-over-week to take their net shorts to 177,754 contracts – a new record (Chart 4). The prior high was recorded in October 2017. When stocks began to sharply correct in January-February and October-December last year, these traders’ net shorts were much lower. This is a dynamic equity bulls should not take their eyes off of.
Just because VIX net shorts are at a new record, stocks do not have to begin to correct right here and now. But with each tick higher, risks of unwinding rise. This suggests a surge in the cash is a matter of when, not if.
SOURCE: hedgopia.com
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Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
