Beware Of 'Animal Spirits 2.0'; Nomura Warns Of Hawkish Fed's Need To Reintroduce Two-Way Market Risk

It's clear that over the past week/month, we have kicked-off a new phase of the Equities rally, beyond the prior dynamic of mass Index Downside Hedge unwind post the debt-ceiling 'non-event', which then acted to catapult Spot Index higher.

Nomura's Charlie McElligott explains that the latest shift - over the past week now - is the classic PM "chase" behavior, where they start coming for anything that had been previously "left behind" in the rally, as yet another sign of capitulatory "stop-in" for funds who simply have not had the positioning "on", and have been forced to grab into exposure to play for a "crash-UP".