One of the ways we gauge market sentiment is by looking at rotation—which areas of the market, traders and investors are most bullish or bearish on, and watching how those trends change over time.
We can track this by looking at price (the upward or downward pressure on an asset) as well as by volume (where the most attention is being paid).
According to volume data from OTC Markets, traders rotated heavily into well-established multi-national companies last month like BNP Paribas (OTCQX: BNPQY), Infineon Technologies (OTCQX: IFNNY) and Heineken (OTCQX: HEINY). This flies in direct contrast with August, when traders piled into emerging industries like cannabis and crypto.
Dollar trading volume in securities from those three firms increased an average of 193% month-over-month from August to September. Shares of Wal-Mart De Mexico S.A.B. de C.V. (OTCQX: WMMVY) were also heavily traded, with nearly one-fifth of the total dollar volume for 2020 occurring last month.
On the other hand, several companies that were most actively traded in August—including names like Trulieve Cannabis Corporation (OTCQX: TCNNF), Curaleaf Holdings Inc. (OTCQX: CURLF), Green Thumb Industries Inc. (OTCQX: GTBIF) and Planet 13 Holdings Inc. (OTCQX: PLNHF)—all saw their dollar volume decline month-over-month in September. Even the Grayscale Bitcoin Trust (OTCQX: GBTC), which remained the most actively traded security on the OTCQX Market in September, experienced a …