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