CWEB Forecast + Trading Strategies


Bullish Case: CWEB's price shows mean reversion (positive momentum) and recent increasing trading volumes. Short-term implied volatility is lower, suggesting less uncertainty for a potential upward move.


Bearish Case: Historical data shows CWEB's negative returns over a 2-year period. Higher volatility at higher strike prices indicates market pessimism, supported by negative delta options volume and bearish risk.


Potential Outcomes: 75% chance stable prices (stagnation) owing to historical mean reversion, 15% chance severe drop (>10%) due to higher volatility at higher strikes, 10% chance rally (>10%) on positive reversal momentum.


Trading Oracle: Employ bullish short volatility with put credit spreads. Sell $29 put and buy $26 put expiring in 31 days (probability of profit: 67%; positive edge, low risk; high reward).


July 17, 2024


Direxion Daily CSI China Internet Index Bu Forecast

CWEB      Direxion Daily CSI China Internet Index Bu











Correlated Assets

Assets that tend to move strongly with CWEB



LI Forecast + Options Trading Strategies   LI  Li Auto (0.27)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.25)


VFC Forecast + Options Trading Strategies   VFC  VF (0.15)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.1)



Uncorrelated Assets

Assets with little price relationship to CWEB



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.1)


VFC Forecast + Options Trading Strategies   VFC  VF (0.15)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.25)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.27)



Anticorrelated Assets

Assets that tend to move strongly against CWEB



LI Forecast + Options Trading Strategies   LI  Li Auto (0.27)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.25)


VFC Forecast + Options Trading Strategies   VFC  VF (0.15)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.1)


CWEB News over Time





Click points to explore news by date. News sentiment ranges from -10 (very negative) to +10 (very positive) where 0 is neutral.






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