Stocks’ ‘Surrogate Buy Flow’ Could Reach $96 Billion, Nomura’s McElligott Says

Stocks’ ‘Surrogate Buy Flow’ Could Reach $96 Billion, Nomura’s McElligott Says

US equities are getting a helping hand from a familiar place. "Systematic Vol Control is a big deal right now, acting as a surrogate buy flow," Nomura's Charlie McElligott said, in a Wednesday note. The ongoing, "background" bid (if you will) has stepped in at a time when the vaunted gamma "pin" lost some of its pull, McElligott remarked, on the way to noting that vol control was in for $3.7 billion Tuesday, the biggest one-day buying impulse in nearly a month. These flows are mechanical. A
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