CHART OF THE DAY: Too Far Over The Ski Tips?
Editor's Note: Below is a chart and excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
...That’s interesting obviously… because 2 of the causal factors that drove US Equity Volatility were:
- USD signaling immediate-term #oversold during Davos week while running a 93% 30-day inverse correlation to SP500
- Rates (both 2s and 10s) ramped to immediate-term #overbought on the US Wage Inflation #acceleration on Friday
You also had the NET LONG position in S&P500 Index + E-minis (futures & options contracts) hit its highest level in 2 years last week at +187,698 contracts (as of last Tuesday’s close). That scored +1.73x on a 1-year z-score.
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