Traders are closely monitoring the Nasdaq 100 Index as they adjust their positions in anticipation of the upcoming Consumer Price Index (CPI) report. The latest CFTC Commitments of Traders report indicates a significant shift in speculative futures positioning, with aggressive selling of SOFR futures contracts, suggesting expectations of higher short-term interest rates. This anticipation is likely driven by the potential for a notable CPI figure, which could influence monetary policy. Additionally, the mixed approach in equities, with buying in SPX futures and selling in NDX contracts, reflects varying expectations about index performance, possibly due to sector-specific factors or broader economic indicators. The short-covering in the VIX suggests diminishing expectations for market volatility, possibly linked to optimism about financial stability or favorable economic data.
The ProShares UltraPro QQQ ETF (TQQQ) experienced a notable increase, rising 4.67% to $82.93 as of 16:20 on Friday, January 17.