EFA – is an ETF of the MSCI EAFE index fund, a pre-eminent benchmark to measure international developed country stock markets – notable put buying with August and September expiration.
EWZ – iShares Brazil ETF – August put buying
GDX – Gold miners ETF – August Call buying – bullish gold position could be a hedge on a bearish equity market
ITB – iShares Home Construction ETF – bearish August and September put buying.
IWM – iShares Russell 2000 Index, small cap equity ETF – August and September put buying
IYR – iShares Real Estate ETF – Consistent bearish flow with rolling of puts from July to September
SPY – S&P 500 ETF – August and January put spreads
TLT – iShares 20+ Year Treasury Bond ETF – bullish flow which could be a hedge on a bearish equity market. U.S. Treasuries is a risk-off trade.
XLF – Financial SPDR ETF – January put buying
XLI – Industrial SPDR ETF – December put buying
For higher frequency traders, this bearish signal from the derivatives market may provide a reason for reducing equity exposure. We are intermediate term traders and will remain long until our Market Sentiment Indicator turns bearish.