Great newsletter!! ♥️ I read that smart players are almost record net short from the chart. What did I miss regarding smart money not being that short now as you wrote?
Thanks! As you can see on the commitment of traders chart for the smart money we had something like:
1. A record net short positions around Christmas.
2. Then a bunch of those shorts get closed just at the end of the year.
3. Now they are back on the trend of adding more short positions.
So what happened is that most likely traders closed some of those arbitrage trades to book profits for the year. But now since we are still in the same market conditions where you can harvest the premium of the futures over spot they are back on the same trade in 2021.
At least that's what I see from a high level perspective.
Ever do a video explaining some of the more complicated futures charts?
Unfortunately anything that requires animations / video editing requires a lot of time to produce with reasonable quality.
So for lack of time at the moment I do not plan on creating any video content.
But many people have requested more explanations on the futures / options so I'll produce some more detailed "guides" in the coming months.
Cheers,
Nick
Great newsletter!! ♥️ I read that smart players are almost record net short from the chart. What did I miss regarding smart money not being that short now as you wrote?
Thanks! As you can see on the commitment of traders chart for the smart money we had something like:
1. A record net short positions around Christmas.
2. Then a bunch of those shorts get closed just at the end of the year.
3. Now they are back on the trend of adding more short positions.
So what happened is that most likely traders closed some of those arbitrage trades to book profits for the year. But now since we are still in the same market conditions where you can harvest the premium of the futures over spot they are back on the same trade in 2021.
At least that's what I see from a high level perspective.