"Friday's VaR-shock is a worst-case scenario against a backdrop where post-financial-crisis highs in 'net' and 'gross' exposures are currently deployed by the majority of equity hedge funds"
The acute ‘Growth : Value’ rotation accelerates in earnest around global equities, specifically with ‘Technology’ sector selling off sharply against rallying ‘Energy’
Meaning this:
Per the title of this blog post, herein lies the problem for the short-covering reflation trade, which has at most two more days to live...
"The big event this week is the FOMC meeting on Tuesday and Wednesday. The markets fully anticipate a 25bp rate hike, and the focus is rather on hints toward the next rate increase. However, the Fed might not send a strong signal given the recent softness in job data and the CPI...A six-month gap in Fed rate action following an increase this month would curb USTreasury yields, which would sap the upward momentum from the USD/JPY.”"
And of course the asinine conclusion:
"We maintain our view of a steady uptrend in the USD/JPY"
This being a steady uptrend:
As for Tech and growth...
Nasdaq 100 daily:
:15 minute
Apple
Amazon
Bitcoin investment trust
Speaking of denial...
"Against a backdrop this week that includes three central bank meetings, Attorney General Jeff Sessions' public hearing and continued uncertainty surrounding how quickly the Trump administration can implement its proposed policies, the CBOE Volatility Index is still hovering around the lowest levels since the index's inception"
"it's been a while since there was any urgency to add protection."
The obligatory asinine conclusion:
"A move higher in the VIX could occur, she said, if investors shift their preferences from momentum stocks into some of the "laggards"
I wonder if that will ever happen...
A move higher in the VIX could occur, she said, if investors shift their preferences from momentum stocks into some of the "laggards, or move out of U.S. equities across the board
Or both...
