"This Has To Be The Least Exuberant All Time High Ever": UBS Head Of Cash Trading

If the recent meltup to all-time highs on the back of a handful of stocks - while the bulk of the market continues to flatline if not, as in the case of the Russell, slide - has got you feeling like something is off, you are not alone: as UBS global head of voice trading Zain Nizami writes, "this has to be the least exuberant ATH ever because of the narrowness i.e. it’s all tech."

Below we share Zain's latest update on crowding and market breadth on the back of questions re moves/flows. According to the UBS trader, YTD moves looks stretched here and may revert, which could be healthy from a market breadth perspective, especially if yields fall on the back of falling MOVE.

Following up on last weeks’ observations, we are definitely seeing an uptick in volumes and participation. As discussed last week, sentiment has gone from forced bullishness to negative very quickly despite market at ATH. This has to be the least exuberant ATH ever because of the narrowness i.e. it’s all tech (see chart below)