Short Interest
2:00 Geoff Garbacz of Quantitative Partners begins by introducing the concept of short interest as a sentiment indicator reflecting how people are betting on stocks. Garbacz explains that it represents the total number of shares of a security that have been sold short but have not yet been covered or closed out. The significance of short interest as a sentiment indicator is emphasized. Historical data on short interest for various stocks are presented graphically to visualize trends and patterns.
5:00 The analysis includes the identification of short interest changes over time, and the calculation of the percentage of stocks’ float covered by short positions. The potential impact of short squeezes on stock prices is briefly touched upon.
10:00 The discussion expands to encompass short and long squeezes’ historical occurrences in major indices like NASDAQ and the S&P 500. The significance of bias indicators such as short interest ratio
(SIR) and days to cover (DTC) in identifying potential market sentiment shifts is explored.
Interest Rates Impact
15:01 This section introduces macro analysis, which involves considering broader economic factors such as GDP growth, inflation, and unemployment when making investment decisions. The impact of macro events on various asset classes like stocks, bonds, and commodities is explained.
19:45 Garbacz elaborates on how understanding the bias and trigger indicators of different asset classes can help traders and investors align their strategies with prevailing market sentiments. The concept of value lines, which help track intra day trading patterns, is introduced.
Using Research for Trading
Using Research for Trading
23:30 The role of options in providing insights into institutional activity and market sentiment is discussed. Garbacz explains how analyzing options data, including open interest and implied volatility, can offer a glimpse into professional traders’ expectations.
25:00 Garbacz introduces the concept of retracement levels in technical analysis, showcasing how these levels help identify potential support and resistance areas. Real charts with examples provide a visual understanding of these concepts in action.
30:00 The presentation concludes with a reminder of the core takeaways: the power of data-driven analysis, the significance of sentiment indicators, and the importance of continuous learning in the dynamic world of finance.
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