Fund Flows

"Friends Don't Let Friends Buy VIX"

"You know a trade is getting crowded when my parents start asking about it.  You know just how one sided something is when people think that even Chuck Norris can’t make money buying vol... I think selling VIX is very crowded and fraught with danger."

Nasdaq Crack: Sharp Slowdown In Tech Funds

One doesn't need to see the recent fund flows to know that the tech euphoria of the past seven months appears to be ending - one look at the recent underperformance of the Nasdaq is sufficient - but it helps.

BofA Institutional Clients Sell Tech Stocks For 3rd Straight Week

Last week, during which the S&P 500 climbed 0.2%, BofAML clients were net sellers of single stocks for the third consecutive week, although the number was almost offset by net buying of ETFs. Institutional clients were the biggest sellers and have now sold stocks the last two weeks,

SocGen: "Fundamentals No Longer Matter? Yeah Right..."

"Any systematic strategy formulated around any notion of price momentum (we’d put volatility weighted and risk parity into this group as well) are simply following slavishly these changes in fundamentals using price as the principal signal for a change in expectations. So it is not that systematic strategies are not driven by fundamentals, it is they offer no view to the future"

BofA: "Central Banks Are Now In A Desperate Dilemma"..."Start Buying Volatility"

"Central banks, the reason behind high asset prices and low vol, are now in desperate dilemma: politically unacceptable for bubble on Wall St, but central banks will be tightening into deflation; inflection point for volatility is upon us and we recommend investors buy volatility....Fed tightening in 2017 could easily be followed by easing in 2018, in our view."

Syrian "Rebels" In Turmoil After Qatar Crisis

Mustafa Sejari of the Liwa al Mutasem rebel group in northern Syria said "god forbid if this crisis is not contained I predict ... the situation in Syria will become tragic because the factions that are supported by (different) countries will be forced to take hostile positions towards each other."

The Rise Of Robots & The Risk To Passive

"...things like “Robo-advisors” and “ETF herding” are symptomatic of a lengthy bull market advance where the pain of previous losses has finally been erased... but when the 'robot trading algorithms' begin to reverse, it will not be a slow and methodical process but rather a stampede with little regard to price, valuation or fundamental measures as the exit will become very narrow."

A Delighted Wall Street Reacts To The French Election

With European stocks on fire, and US futures moving fast to recoup recent all time highs, it is no surprise that Wall Street is feeling particularly bullish this morning. Below is a sample of slleside analyst reaction to Sunday's outcome.