There’s always a tug-of-war taking place in markets. Buyers versus sellers, bulls versus bears, macro versus micro, and so on. From my vantage, the struggle in today’s market has been between structural market strength and environmental agitation.
I open this week’s episode with a discussion about what this means and how it is playing out. From there, I take it around the horn with stops to look at the recent market up/vol up action, fixed strike vol, liquidity, and a dislocation between credit spreads and the VIX.
I wrap up with check-ins on rotation and volatility composition where we see implied correlation starting to lift off from very low levels, which should not be ignored.
Thanks, as always, for watching.
Here we go!
