Has the US market reached the end of the correction yet?
(Photo: AP)
Dusseldorf Professional investors who are betting on falling prices for exchange-traded funds (ETF) on the US market are currently less aggressive than they were in May. As of July 8, these short sellers opened just $3 billion worth of new short bets on a 30-day view. This is the result of an analysis by the financial data provider S3 Partners. In May, new bets worth $20 billion were opened.
This trend also applies to individual stocks, but the informative value is stronger for ETFs. Because: “Institutional investors use short bets on ETFs as a hedge for the portfolio,” write the S3 analysts Ihor Dusaniwsky and Matthew Unterman. This applies above all to ETFs on the market-wide leading index S&P 500, the small-cap index Russel 2000 and the technology index Nasdaq.
>> Read about this: Signs of an end to falling prices? Short sellers open fewer new bets
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