Nasdaq futures reverse to trade below 1%, suspected Softbank Principle (NASDAQ: QQQ)

Update (4:15 am ET): Volatility is still the name of the game … Nasdaq futures occur again, touching positive territory earlier in the night 1% off.

Is the take carriage over? It tells very quickly, but the Nasdaq 100 (NASDAQ: QQQ) The promise Turned positive Moment before, later Diving more than 2% On Labor Day weekend. Contract tied to dow (NYSEARCA: DIA) And the S&P 500 (NYSEARCA detective) are doing 1.1% and up to 0.8%, Respectively.

While many market players were unable to pinpoint a single trigger for Nasdaq 6% dip On Thursday and Friday, valuations have intensified 75% profit A hit from the bottom in March.

The “Nasdaq Whale Theory” also continues to make waves, though not everyone is convinced by the evidence. Recent reports suggested Japanese investment group Softbank (OTCPK: SFTBY) Tech stocks had been loading on options for the past several months and were now sitting at a profit of $ 4B. “Now Known,” shares Softbank with posts Fell 7% In Tokyo on Monday, shed $ 9B in market cap.

Others say that strategies adopted by entities such as SoftBank will have minimal impact on market volatility, such as Ben Effert, chief investment officer of hedge fund QVR Advisors.

He said that the real power is being used by day traders to buy huge amounts of call options on tech stocks that have created a virtuous hedging and bought stocks pushing the cycle upwards.

“This market moves up and down rapidly because investors and speculators are very active and the situation is crowded,” he said Written in a tweet thread Which explains the difference between “retail betting and short-term call buying (Robinhood)” and “institutional call diffusion in technology (softbank etc.).”