Q: My question has to do with technical indicators that may signal bearishness. In particular, I'm looking at the "unusual short interest" in the mentioned ETFs. Some popular "influencers" indicate they hedge when a market turns downwards by shorting these ETFs. This, the logic goes, is a way to protect the downside without liquidating high growth holdings.
Right now, my intution is that there is a "de-risking" going on in the markets (away from high growth and speculative cyclicals to blue chips and large cap tech).
My questions: Do you see unusual short activity going on in these ETFs, is it a fair indicator of broader bearishness, and do you think the strategy of hedging by temporarily shorting these ETFs is sound?
Right now, my intution is that there is a "de-risking" going on in the markets (away from high growth and speculative cyclicals to blue chips and large cap tech).
My questions: Do you see unusual short activity going on in these ETFs, is it a fair indicator of broader bearishness, and do you think the strategy of hedging by temporarily shorting these ETFs is sound?