Non-Profit Tech Basket was +2.1% yesterday leading the midday 0DTE led squeeze…
- 0DTE – finally getting LOTs of questions on this from Institutional Clients with these Zero Days to Expiration SPY Options representing record daily flow and bullying aggregate US Equity positioning like a boss. Top 2 Most Active Options on the board were the JAN27 $403 and $404 SPY contracts which had > 434k and 405k contracts – think about that! LOL. That, of course, suppressed front-month US Equity Vol (VIX) back to the ball under-water part of the pool (i.e. < 19)
- OIL – if the economy is “soft landing” like a puppy dog’s ears, you know they don’t get inflation to fall at a faster rate, right? #BHL (big higher-low) #VASP Signal on WTI this morning with the low-end of my Risk Range popping up to $77.63 and a potential @Hedgeye TREND breakout in play (TREND #VASP Signal Line = $81.99 WTI). Energy Stocks (XLE) back to Bullish @Hedgeye TREND yesterday too
- 2YR – if the economy is what Powell “reads in the papers” with his Coffee this morning (i.e. the > 2% headline q/q SAAR print we were calling for Q4, which was really a big #Quad4 y/y slowdown to +0.96% from +1.94% in Q322), and Labor (see new lows in jobless claims) remains tight, the Short-end of The Curve has it right (2s up +8bps in the last 24hrs after holding @Hedgeye TREND support) which should perpetuate further Yield Curve inversion from here
Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.37-3.62%
KM
