Saxo’s Client Positioning Overview – Week ending 15th Nov 2024

What does it mean?

1. The number of clients holding Nvidia, TSMC, and AMD increased by 2%, 2%, and 1% respectively, despite negative returns recorded over the past week. While there are concerns about semiconductor and AI chips demand, the increase in clients may indicate confidence in the growing AI industry. Reactions to Nvidia’s upcoming earnings report this Thursday are mixed.
2. SoFi observed an increase in both the number of clients holding its stock and net exposure, indicating positive sentiment regarding SoFi’s robust earnings results.
3. Over the past week, Coca-Cola's stock price has declined, while both clients and market exposure have increased. Coca-Cola remains a top position in Warren Buffett’s portfolio, according to Berkshire Hathaway's latest 13F filing. Read more about Warren Buffett’s Q3 portfolio shifts here.

Top 5 Major Stocks with the highest week-on-week % decrease in holdings

What does it mean?

1. Coinbase shares continued their downward trend in the number of clients holding them, declining by 4%, while net exposure increased by 8.9%. This may be attributed to profit-taking following a strong Bitcoin price surge.
2. Similarly, profit-taking may explain the sell-off in Shopify and Block after the companies reported better-than-expected third-quarter results.
3. Citigroup concluded the week positively, but both the number of holding clients and net exposure declined over the past week, potentially due to profit taking and the recent AML investigation case.
4. Lastly, Adobe's stock faced a decline driven by investors' concerns about the company's growth outlook.

Top 5 ETFs with the highest week-on-week % increase in holdings

What does it mean?

1. No. of clients that holding positions in the small-cap iShares Russell 2000 ETF experienced a 12% increase, and there is a 17.8% rise in net exposure. This change was influenced by domestic-focused policies post-election.
2. Similarly, Bitcoin-related ETFs such as the iShares Bitcoin Trust ETF saw a 6% increase, accompanied by a notable 27.8% rise in net exposure.
3. The demand for AI and semiconductor applications contributed to market interest, with leading companies reporting strong earnings last week. The Direction Daily Semiconductor Bull 3X Shares ETF observed an 8% increase in the number of clients and a 6.5% increase in net exposure.

Top 5 ETFs with the highest week-on-week % decrease in holdings

What does it mean?

1. The ProShares UltraPro Short QQQ ETF observed a 4% decline in the number of clients holding the ETF last week, accompanied by a 4.8% decrease in net exposure, reflecting the bullish sentiment towards the US market.
2. The iShares China Large-Cap ETF experienced a 3% reduction in client holdings, along with a 0.3% drop in net exposure. This shift likely stems from investor bearishness on further Chinese stimulus measures—similar to trends observed in the iShares MSCI China ETF.
3. The ARK Next Generation Internet ETF had a 2% drop in clients but saw a 3.7% rise in net exposure, indicating positive sentiment toward innovative technologies.

Position Change in the Top CFD Indices (week-on-week)

What does it mean?

1. The EU Stocks 50 index was under pressure last week, which may have resulted in increased client interest to buy cheaper, but overall long positioning was down by 13%.
2. The US 30 Wall Street 50 index observed the most significant decrease, with a 12% drop in the number of clients trading the index. Of these clients, 18.6% have switched to long positions.

Position Change in the Most Popular FX pairs (week-on-week)

What does it mean?

1. Among FX pairs, EUR/JPY saw the largest increase in the percentage of clients trading the pair at 18%, followed by AUD/USD at 15%. On the other hand, AUD/JPY experienced a 13% decrease in the number of clients trading the pair, followed by XAU/USD with a decrease of 12%.
2. Regarding the percentage change in long positions, GBP/JPY had the highest increase at 12.1%, followed by XAU/USD at 11.7%.

Note:

• The percentage change in number of clients refers to the total change in number of clients trading the instruments.
• The percentage change in net exposure refers to the change in total value of positions held by clients.
• The percentage changes are calculated based on a comparative analysis between the data as of the end of trading day on 11^th Nov 2024 and 15^th Nov 2024.