Brutal: The Market Is Breaking, And The Machines Are Selling
Brutal
A brutal day across markets. Semiconductors are getting destroyed, Nasdaq is breaking critical technical levels and volatility is exploding, with VVIX surging an extraordinary 45 points. Meanwhile, the mechanical selling machine is kicking into gear, with vol-control deleveraging, CTA selling and negative dealer gamma threatening to amplify the moves. Yet beneath the panic, some extreme positioning dislocations are starting to unwind, creating opportunities for contrarians. This is not a market to simply sit back and watch, especially if you have the P&L cushion to take some risk.