[COMPLIMENTARY] Top 3 Things | QQQ/Baskets/Bonds

Another epic day for the #0DTE Options Bubble saw > 465k SPY 412 Calls print (#1 on the Most Actives Board)…

1. QQQ – with > $174k of the TSLA weekly (FEB17) $215 Calls on the board, another “Basket Squeeze” was on yesterday with Retail Investors in full chase mode as Hedge Funds were forced to buy/cover again; all of this brings #NazVol (NASDAQ Volatility, VXN) right back towards the low-end of its ball-under-water 23.74-28.25 Risk Range with implied volatility on QQQ diving to a very complacent -9% DISCOUNT vs. 30-day realized
2. BASKETS – the way this works is TSLA Go Up, Short Squeeze Baskets Go Up – High Retail Sentiment (widely owned story stocks) Basket squeezed +6.9% higher yesterday (vs. SPY +0.2%) and the Bitcoin Sensitive Equity Basket was +6.3%. Nothing to see here, especially not The Cycle!
3. BONDS – Bond Market signaling no change: A) tightening financial conditions on the short-end of the curve at 4.58% on 2s and B) lower-highs on the long-end of the curve (top-end of my range on 10s = 3.86%, which is below both the DEC lower-highs, and below the OCT 2022 Cycle Highs. If you go to the low-end of my 10s range, the 10s2s curve will be -108bps inverted (won’t happen that way, but directionally looking for further inversion in the coming months)

Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.50-3.86%

KM