"Skew Is Broken": Goldman Vol Desk Says There Is No Fear Of Downside Left

The month of May is over and the meltup, or as BofA's Michael Hartnett called it, the biggest bubble since railroads continues to grow, with Micron rising above $1000 for the first time ever on Sunday night. Not surprisingly, in his Sunday Weekend Prep note, Goldman derivatives guru Brian Garrett writes that "discussions in the desk have gone from “make it stop!” in March, to “wow, this is still going up?” in May."

Some stats from Garrett on why few believe this rally: there have been 102 trading sessions so far this year, the S&P has made an new all-time, on average, one out of every five of those sessions (21%), with Russell and Nasdaq not far behind (17%), and while 2026 volatility has been loud enough to matter short term, it is not loud enough to break the bid.