CHART OF THE DAY: NASDAQ 100 = Consensus Long With Rising Volatility

07/16/20 07:41AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

Many Perma Bulls want to (or need to) believe The Flow argument of “liquidity” and “don’t fight the Fed”, but not everyone wants to accept that the #1 threat to both the Fed and all of these “liquidity models” is The Volatility!

While I am sure they’ll have no responsibility in crowding consensus into a narrowing pipe of stocks with bubble market caps (5 stocks = 40% of the NASDAQ and 2 stocks = 40% of the Tech ETF, XLK)… that still happened.

And… now that that’s one of the most consensus net LONG positions in ALL of Global Macro (see non-commercial CFTC Futures & Options positioning data as today’s Chart of The Day), what could possibly go wrong on a breakout in NASDAQ Volatility?

CHART OF THE DAY: NASDAQ 100 = Consensus Long With Rising Volatility - Chart of the Day

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