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Stock-market bets against Nasdaq index hit decade peak

Stock-market bets against Nasdaq index hit decade peak

The technology-laden Nasdaq Composite Index stands less than 2% from its early September peak, as of late Tuesday trade, reflecting its resurgence from its jaunt into correction territory less than a month ago.

However, rather than betting on continued progress in the popular benchmark that has led the run-up from coronavirus-induced lows, investors are mounting bets that the benchmark continues to be overpriced and faces a fresh collapse in the near-term.

“Somebody, somewhere, still wants to bet against this market,” writes Jason Goepfert, head of SentimenTrader and founder of independent investment research firm Sundial Capital Research, in a Tuesday research note.

Goepfert writes that so-called short interest, or the total number of shares of a particular stock or fund that have been sold short by investors, but haven’t yet been covered or closed out, on stocks trading on the Nasdaq Composite

rose in the last two weeks of September to around the highest level in 10 years, at around 9.7 billion shares (see chart below expressed as a percentage below a chart of the Nasdaq Composite’s absolute value).

Jason Goepfert at SentimenTrader

Of note, Goepfert said some investors view rising short interest as a contrarian sign, one that may signal a bullish trend for the benchmark market, since it also reflects a potential snapback trade for stocks if bearish investors suddenly are forced to unwind their short bets and buyback stocks they have borrowed in their short bets.

However, the SentimenTrader analyst says investors willing to dismiss the current rise in short-term interest, or view it as a potential cause for buying and not caution, do so at their own peril.

As the stock market has surged higher in the aftermath of its swoon back in March, amid the peak of selling precipitated by worries about the economic

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Tesla’s Model 3 Lost In The World’s Most Advanced EV Market In A Peak Month (NASDAQ:TSLA)

Tesla’s Model 3 Lost In The World’s Most Advanced EV Market In A Peak Month (NASDAQ:TSLA)


Norway is a small automotive market but is widely regarded as the most advanced market for electric vehicles (EVs) in the world thanks to generous government incentives. Battery electric vehicles (BEVs) and hybrids accounted for over 80% of sales in September 2020 and the national parliament has set 2025 as the target year for the country to go fully electric.

This is why electric vehicle data from Norway if often used as an indicator for the prediction which models and manufacturers will excel in a world in which electric vehicles become the norm. There is also no local player, which means the Norwegian EV market is not skewed like some other countries like France where the Renault Zoe reigns supreme.

As I mentioned in my previous SA article on Tesla (TSLA), its Model 3 always performs poorly in Europe during the first month of each quarter, with a big push coming in the third month.

Well, the Model 3 just lost decisively in Norway in September with the Volkswagen ID.3 getting 77% more sales.

The EV market in Norway

According to data from ElbilStatistikk, the top three bestselling EVs during the month of September were ID.3, Model 3, and Polestar 2 with 1,974, 1,116, and 928 units, respectively.

(Source: ElbilStatistikk)

October is starting even better for the ID.3 with 213 units sold so far. The Model 3 has just five, but this is normal as Tesla usually performs poorly in the first month of each quarter as I mentioned.

However, 2020 YTD is also being dominated by another VW model, the Audi E-tron. And the Model 3 will be surpassed by the ID.3 in around three weeks at this pace.


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