By Eli, Rachel
Overall sweeper activity was bullish for most of the sessions last week, call sweepers were primarily focused on speculative growth plays, although buying did sprinkle in across many sectors. Some protection made its way through the week.
On the indices side, the overall action wasn't even all that bullish, it was all the activity in the speculative names that created some heat in sentiment. All the gains were seen in the $Russell 2000 ETF(IWM.US)$ and $PowerShares QQQ Trust, Series 1(QQQ.US)$ showed some strength as well.
Can this last for a bit? Memorial Day week has a reputation for seeing this type of speculative action on low volume. Too early to really tell what this means big picture-wise, it all depends on how long this squeeze will last。
Short week, volume and liquidity should be thin, could help create some decent movement out there in names if institutional sweepers are active. No real edge anywhere out there to sum things up best. The Nasdaq was nicely set up but saw a solid rally last week taking the short-term sentiment back up to neutral.
Three scenarios
Bullish bias, nice washout in sentiment over the lastest pullback, there's room for further upside before sentiment becomes an issue.
Bearish bias, coming off a solid rally and running into quite a few upside exhaustion, especially in Nasdaq names.
Neutral, allow institutional sweeper buying to be your guide, and stick to initial activity in new names at solid risk/reward spots.
Notable bettings toward broader market indices ETF on 5/28
Individuals breakdown by sectors (5/28 notable bets)
Tech
Industrial
Consumer Cyclical
Financial
Communication Services
Healthcare
Energy
Basic materials
Consumer Defensive
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