Semiconductors have always been the most extreme assets in the US-China geopolitical game when it comes to policy pricing. Rumors of export controls, chip subsidies wavering, and supply chain scrutiny can quickly turn funding rates negative. Currently, $SNDK funding is -0.00076, with shorts continuously paying up, indicating that the entire market positioning is heavily skewed to one side.
However, the price has surged nearly 7% in the past 24 hours. This negative funding rate coupled with positive price movement is a classic sign of shorts getting squeezed. Not only do shorts have to absorb price reversals, but they also pay funding fees daily, which raises their holding costs linearly. As long as there are no substantial sanctions or bans in place, this crowded short position is unlikely to hold out for long.
This is a classic play in policy trading: panic pushes everyone in the same direction, while the premium gets slowly eaten away by the opposite side. Semiconductors are the most sensitive track in the US-China contest, and the wavering policy expectations themselves become a dividing line for bulls and bears. Right now, I lean towards the view that this crowded short position is providing short-term support, and I’ll be on the bull side until a verifiable policy black swan appears.
Trading Tag: #TradFi #链上美股 #SNDK
How long do you think this policy boost can last?
However, the price has surged nearly 7% in the past 24 hours. This negative funding rate coupled with positive price movement is a classic sign of shorts getting squeezed. Not only do shorts have to absorb price reversals, but they also pay funding fees daily, which raises their holding costs linearly. As long as there are no substantial sanctions or bans in place, this crowded short position is unlikely to hold out for long.
This is a classic play in policy trading: panic pushes everyone in the same direction, while the premium gets slowly eaten away by the opposite side. Semiconductors are the most sensitive track in the US-China contest, and the wavering policy expectations themselves become a dividing line for bulls and bears. Right now, I lean towards the view that this crowded short position is providing short-term support, and I’ll be on the bull side until a verifiable policy black swan appears.
Trading Tag: #TradFi #链上美股 #SNDK
How long do you think this policy boost can last?