Volatility Pulse - Tech Euphoria
Tech Rally for the ages XLK gained more than 20% in 13 days — a move only seen before at the Covid lows, 2009 lows, and 2002 lows. The biggest difference: this time XLK was already at an all-time high when it started. |
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Source: Bloomberg
April Fools for anyone not long Nasdaq Halfway through April, the Nasdaq 100 just logged its best first 10 trading days for the month in its entire history — during an active Middle East conflict that started the month. |
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Source: Bloomberg
A cool $6.5 Billion in inflows to QQQ this month Five-session inflows into QQQ hit $6.5 billion — the strongest since October. The tech bid is back with force, and it's not subtle. |
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Source: Bloomberg
Tech ETF Up, Tech Stocks Down XLK is at a record high. Two-thirds of software stocks are in drawdowns of 30% or more. The ETF and its underlying stocks have almost nothing in common right now. |
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Source: Bloomberg
Tech Has Never Been More Split Return dispersion within the Technology sector has never been higher in recorded market history. Winners and losers are further apart inside tech than at any previous point. |
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Source: Bloomberg
Semis Chasing a Monthly Record Flows into semiconductor ETFs (SMH and SOXX) are on pace for a monthly record. The AI infrastructure bet is still accelerating — the conflict barely made a dent in the thesis. |
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Source: Goldman Sachs
Melt up The S&P 500 flipped from oversold to overbought in just 11 days — the 2nd fastest such reversal since 1950. The only precedent faster than this happened over 70 years ago. |
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Source: Bloomberg
Correction Territory to ATH in a flash The S&P 500's round trip from a near-correction (-9%) at the hands of Operation Epic Fury to a new all-time closing high took only 54 trading days — the fastest since the Covid recovery in 2020. |
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Source: Bloomberg
Shorts: Best Week Since 2023 A Goldman Sachs basket of the most-shorted stocks jumped more than 13% this week, outperforming the S&P 500 by 9 percentage points — its best weekly performance since 2023. |
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Source: Bloomberg
The Call Rush Is On Call skew has exploded higher as the market races to buy upside exposure — low-delta calls are getting priced up aggressively. Outright upside is now expensive at record levels. |
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Source: Goldman Sachs
Put Spreads: On the Clearance Rack 1-3 month put spreads are trading in the bottom quartile historically. Puts are cheap and calls are expensive - great time to look for collars. |
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Source: Bloomberg |
Just Because The Queen of England Celebrates two birthdays. One is her actual Birthdate and the other is a set date in June where oficial ceremonies can be held. This practice was started to ensure that chances of better weather were more consistent for parades and outdoor activities. |
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