Great post!
I'm personally most of the time trying to trade indices to the long side, as I believe sentiment dictates SPX moves. IG, FXCM and various other brokers' provided sentiment shows regular traders being short as usual. That said, I've been shaken out of my longs multiple times recently, as I've not 100% acclinated to the larger ranges and old larger trade sizes yet.
I'm not a reader of Zerohedge, but someone shared a link recently and somehting caught my attention. Seems large traders have taken a step back and volumes have been dialed down to absolutely abysmal levels, making it look like only retail traders and a few algos are still playing the trading game on the indices. That means the playing field has changed again and possible rug pulls ahead:
Bloomberg also picked up on a chart that we showed from Goldman yesterday, demonstrating that the "fingerprints of tiny investors are all over the options market" where as we noted yesterday, trades consisting of just one contract now account for 13% of total volume
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Ohh nice!
I expected this to be happening, but it's good to see it written down... even if it's in ZH haha.
Thanks for sharing :)
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