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Amid ‘Odd’ Treasury-Fed Spat, Correction Window Opens Ahead Of Assumed Year-End Melt-Up
Prepare for a possible "unclenching."
That's one message from Nomura's Charlie McElligott, who, in a Friday note, reiterated that with the bank's data showing "a significant amount of the aggregate options position $Gamma" poised to roll off across SPX/SPY, QQQ, IWM and EEM, there's scope for the vaunted "pin" to lose some of its hold, opening the door to a wider distribution of returns.
But fear not -- or, perhaps "don't panic," is better - because according to conversations "across the diasp
This is coming from the White House. They are trying to kneecap the new administration if they cannot win the electoral college by nefarious means. Reminscent of Hoover after he lost the 1932 election, and it is why inaguration was shortened to January 20th from March. There will probably be a move to shorten this window further. Maybe January 3rd? In any case, it is not going to work. Even if somehow they managed to convince Michigan or Pa. to change the electors slate it still won’t be enough- and it is extremely unlikely they will do so. After the specials in Georgia, you will see the political winds finally winding up the administration. Of course, they will try to make a comeback. In the meantime you will probably see return free risk in the financial markets…..
Tanking the markets is, unfortunately, necessary impetus to push Mitch into a deal. This backstop removal is, countering intuitively, what we need (providing we aren’t measuring success by market indexes).
A message to State Governments about Trumps ability to “Have or have not” Michigan may need monies.
Articles like this are why I subscribe to this blog. Thanks!