Identifying Reversals Using Leveraged ETFs
Trade signatures offer valuable insights into institutional positioning and intent.
Institutions follow certain patterns when opening and closing leveraged trades.
Institutional behavior on certain dates is predictable.
Chinese EV makers leaped on news that Tesla was scrapping a Model Y discount Friday as investors hoped that the move signaled the beginning of a détente to the country’s EV price war.
Xpeng was up 4%, Li Auto was trading 3% higher and Nio rose 2% by lunch time in Hong Kong trading. BYD was up just over 1%.
On Tuesday, Uber Technologies Inc (NYSE: UBER) posted a mixed first quarter report. Although Uber slightly surpassed revenue estimates, it posted an unexpected loss.