How Bank of America Is Trading The Market's Left And Right Tails

Renewed optimism from the temporary ceasefire in the Middle East has once again highlighted the pronounced right-tail asymmetry in US equities. While not as extreme as the tariff relief rally of Liberation Day, when hedge fund positioning was extremely bearish, the S&P retraced its 19-session grind lower (realizing 15.9% vol) in just 7 sessions (realizing 23.9% vol).