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Foreign Short Positions Hit Record High as Taiwan Stocks Face Resistance
Finance · Investment Banks/Brokers · economic_daily · 2026-11-09
Foreign investors have pushed net short positions in Taiwan index futures to a record 100,000 contracts, capping the market's recent technical rebound.
What Happened
Record Short Positions: Foreign investors have increased their net short positions in Taiwan index futures for five consecutive days, surpassing 100,000 contracts for the first time, reflecting significant caution regarding the market outlook.
Technical Resistance: The market's recent rebound was capped by the downward-sloping 5-day moving average, and the persistent basis gap between futures and spot prices suggests the market remains in a technical correction phase.
Options Market Sentiment: Options data indicates that while panic has subsided, market makers have established a support level at 40,000 and resistance at 45,000, pointing toward a period of range-bound trading.
Key Indicators: Analysts suggest that while some short positions are for hedging, the definitive signal for a bullish reversal will be when foreign investors shift from net sellers to net buyers in the spot market.