The Power Of Positive Thinking

All anyone cared about on Monday was Pfizer's stunning vaccine news. Invariably, you'll hear a chorus of warnings that reflation winners ran (way) too far, (way) too fast, but such voices mattered little in the heat of the moment. Russell 2000 futures came into the cash session limit-up. By Monday afternoon, the small-cap ETF had outperformed QQQ by one of the widest margins in two decades. What you see in the figure (above) is a session for the history books. Monday was among the best days for the small-cap product versus the Nasdaq 100 ETF ever. The reversal shocks across factors were dramatic. "The five-year plus placeholder that was long secular growth (bond proxies), short cyclical value (economically sensitives) was in flames," Nomura's Charlie McElligott said. "My Equities L/S model is -380bps today, which would be the third-worst day over the prior one-year period," he added. As former head of equity derivatives at RBC Dominion, Kevin Muir, put it, "market participants are well offsides [and] whenever you get market players hurting this much, crazy stuff happens." In the ra
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4 comments on “The Power Of Positive Thinking

  1. Sheldan says:

    Wait! Don’t sell Peleton yet – won’t all those cruise ships need to stock their gyms with exercise bikes?

  2. That final chart tells quite a story.

  3. runamok says:

    I better check JETS.

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