Crazy Things Are Happening With ETFs

Today was a strange day in the market, with the early risk off sentiment quickly reversing as traders seemed to look past the flurry of US/Iran newsflow and aggressively fading geopolitical risk moves (at one point the S&P was solidly green).

And, as Goldman's trading desk writes in its daily wrap, "there was lots of head-scratching ‘wrong way’ moves out there as we rebounded >1% from early session lows. The feedback we consistently heard was the "subsectors I thought would o/p or u/p to start the day have done the complete opposite". Defensives traded DOWN while RTY and Non-Profitable tech pockets out-performed."