Set FAZzers to “Done”
While not a student of the markets as much lately, I am a student of StockTwits. I pore over the stream all day every day and today noticed something. Conversation in the Inverse ETF’s such as $FAZ and $SRS has virtually stopped. Below is a tag cloud of the most popular tickers on StockTwits today (click to enlarge):
$FAZ and $SRS, two of the more popular Inverse ETF’s are nowhere to be found. Compare this to a visualization of the top tickers on StockTwits for 2009 (where they were some of the most popular:
Since there is a major relationship between tweets and share volume, one would expect the volume in these ETF’s to have dropped as well. This is indeed the case:
While some of this low volume is due to the holidays, volume is clearly slowing down compared to what it was this summer when people were “FAZ-zing their faces off”, as The Fly would say.
During the entire summer the bears were feeding the bulls through vehicles like $FAZ and $SRS. This is the first real evidence I’ve seen that the bearish euphoria is waning. Is this bullish or bearish? I’m not quite sure.