The $20 Billion Sell Flow Behind Thursday’s ‘Counterintuitive’ Stock Plunge

Stocks were supposed to rally if Nvidia delivered another blockbuster set of results. Nvidia held up its end of the bargain, but tech stocks nevertheless tumbled on Thursday ahead of Jerome Powell's hotly-anticipated Jackson Hole address. What was behind the selling? Spoiler alert: Probably systematic de-leveraging. Regular readers will recall that vol control strats accumulated a mountain of equity exposure over the course of a summer melt-up characterized by a steady grind lower in realized