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Nomura’s McElligott: ‘One Left Tail Down, One To Go’
Joe Biden's resurgent, come-from-behind bid for the Democratic nomination has removed one of the "left tail" outcomes that set in motion the "multi-week, rolling gamma- and vol- 'event'" that manifested in the most harrowing rout for US equities since the crisis.
The Bernie "black swan" is "now in the process of being downgraded as a probability for markets", Nomura's Charlie McElligott wrote Wednesday morning, in the wake of Super Tuesday.
He adds that when you see ridiculous rallies in futs,
The only chart in town that matters:
https://fred.stlouisfed.org/graph/?g=qhh9
I’m not sure that makes any sense. You’re comparing the price of a one month option on SPX to the yield on a long-end bond. what’s the point?