Nasdaq: What's Behind the Freshly Squeezed All-Time Highs

01/03/18 07:57AM EST

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by CEO Keith McCullough. Click here to read more about the Early Look. 

Nasdaq: What's Behind the Freshly Squeezed All-Time Highs - 01.03.18 EL Chart

Let’s look at what drove yesterday’s freshly squeezed all-time closing high in the Nasdaq. Per the tourists who sold and/or hedged at every higher-low, Tech was in some kind of a “correction mode” for the better part of DEC 2017.

From our measuring and mapping #process’ perspective, that’s fake news. This is what actually happened:

  1. The Nasdaq sold off to the low-end of the @Hedgeye Risk Range on DEC 31
  2. The Net LONG position in the Nasdaq collapsed to only +3,302 contracts by 2017 year-end
  3. The Nasdaq went from having an implied volatility DISCOUNT of -5% to a +26% PREMIUM into DEC 31


Nasdaq: What's Behind the Freshly Squeezed All-Time Highs - early look

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