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