Premium"My Goodness, Was That WRONG": McElligott's Mea Culpa As A "Biblical" $165BN Mechanical Purge Sends AI Momentum To 5th Worst Crash In History
Last night, Nomura's Charlie McElligott was counting the mechanical supply as it piled up into Thursday's close: (at least) $47 billion in levered ETF selling ($52BN according to Morgan Stanley), $61 billion in vol control, $7 billion in dealer gamma per 1% move, and a market that had learned to front-run all of it before the 3pm bounce.
Then the bounce never came.