Along with tearing January’s sheet off our calendars, traders look to reallocate their sector ETF hedges and holdings in the first week of the new month. There were two sector ETF’-s with significant increases in short activity this month, as traders added $1.44 billion of short interest into the Spider Consumer Discretionary ETF (XLY US) and the Spider Technology ETF (XLK US). On the other side of the ledger, traders bought to cover $1.72 billion in two sector ETF’-s, the Spider Consumer Staples ETF (XLP US) and the Spider Energy ETF (XLE US).
It seems that short sellers are looking for stocks to continue their January trends, shorting into the underperforming Consumer Discretionary and Technology sectors, while buying to cover in the rallying Consumer Staples and Energy sectors.
For more information on the above analysis, please contact:
Ihor Dusaniwsky, Head of Research, S3 Partners, LLC Ihor.Dusaniwsky@S3Partners.net
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