Outside of oil, markets are making an effort to normalize.
That makes markets not much different from humanity. It's all about the normalization process or, at the least, drawing a map that will get us back to "normal".
In this regard, every incremental piece of news that suggests some country, state or even city/town is taking steps to reopen will be seized on by someone, somewhere as another piece of the puzzle which, when it's all put together, will show equities back near pre-COVID levels.
Or at least that's the plan. And you know what they say about the "best-laid plans", right? Something about how they never go awry.
In any case, Nomura's Charlie McElligott on Tuesday continues the discussion from last week around the the gradual return of key flows which together help perpetuate the virtuous loops that make for calm, steady grinds higher.
"We have noted the return of heavy Overwriter (vol selling) flows in US Equities over recent weeks, which has accelerated the normalization in US Equities single-name and index Vols", Charlie begins, adding that "now, with the VIX curve term structure too normalizing from the multi-month inversion in the front-end, it's likely that t
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