Short Sellers Continue To Provide Support For the NASDAQ 100 As They Cover Positions

Oct.10.06 | About: PowerShares QQQ (QQQ)

In late July, around the same time the Nasdaq 100 (blue line) hit its lows for the summer, net long exposure among speculators (green line) in the futures market plunged to record lows.

While short exposure has eased somewhat throughout the course of the Nasdaq’s 15% recovery, speculators remain net short when we tally the net exposure in the regular and mini Nasdaq 100 contracts. Based on current levels, they are also shorter now, than they were one week, one month, three months, and six months ago. This indicates that the index could have further support going forward as speculators cover their positions.

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