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The Macro-Market-Policy Conjuncture According To Charlie McElligott
Skew is dead, long live skew.
For the better part of two months, Nomura's Charlie McElligott pointed to an apparent dearth of demand for downside protection to make the case that equity exposure among key investor cohorts wasn't long enough to presage an escalatory drawdown for stocks.
Put differently: Flat skew/moribund put skew appeared to suggest that at least some investors were under-exposed (you don't need to hedge what you don't own), a message that was corroborated by steep call skew (
Thanks for sharing because at the open I was confused why qqq was up one percent into todays hot jobs data.
Not sure it has much to do with that. More a quick recap of where we are now versus a week ago.
Uh, because AAPL up $5 pre market on B of A upgrade. That’s gonna lift the Q’s and the Spooz.
I listened to Jeremy Siegel the other day on CNBC saying that the market is not actually expecting 5-6 rate cuts. He said that traders are hedging the FED’s dot plot of 3, in case the data turns south really quick. Not sure I agree but thought I would share.
The H-Man – ploughing through all that sellside research so we don’t have to. I am definitely reducing exposure to high duration names until we see more reasonable “priced in rates” (sorry not my terminology). Anyway, to the mysterious author – I salute you. Please don’t stop what you are doing. This parsing of dense, often impenetrable notes is a valuable service. Synthesis meets analysis. Good luck everybody