Traders made a record rate against the rebound in tech stocks

The Nasdaq 100 Index rose significantly at the end of last week. At the same time, there were record cash inflows into the ProShares UltraPro Short QQQ (SQQQQ) exchange-traded fund. This ETF had an inflow of about $658 million.

The ETF is targeted at short-term periods of time. This makes the inflows into SQQQQ significant as part of the short-term technology rally.

VettaFi financier Dave Nadig said that the main purpose for developing instruments like SQQQQ was to make big moves during periods when investors and hedge funds want to take strong positions against big moves. He believes that big market participants are probably using it to make a quick profit on declines and express their disbelief in rallies.

Bearish inflows have more than doubled assets in the SQQQ, in comparison to early 2022 levels. Now they total $3.6 billion.