Can tech dismiss rising rates?
Yields matter
Soc Gen points out a slight problem for equities: "Over 45% of the MSCI World market cap prefers bond yields to be going down, not up."
Source: Soc Gen
Guess who's back?
Bond volatility, mighty MOVE, is back with a vengeance. Do not neglect this one...
Source: Refinitiv
Rates and tech
NASDAQ and the US 10 year have moved in almost perfect tandem since early July. Short term gaps like the one we are seeing post the most recent NASDAQ bounce is fairly wide...and such gaps have been closed.
Source: Refinitiv
NASDAQ - the bearish cross
NASDAQ continues trading the perfect short term negative channel. Note the 21 day is crossing the 50 day as of writing. Last time we had a similar cross things got rather "dynamic" to the downside. Chart 2 shows the short term, 10 min 30 day, view.
Source: Refinitiv
Source: Refinitiv
Tech valuations appear very stretched again
MSCI World Tech 12m forward P/E relative.
Source: JPM Equity strategy
That Mega-cap TMT long
Hedge fund exposure to Megacap TMT is just shy of historical highs.
Source: Morgan Stanley
Crap not buying it
Low quality stuff such as the most shorted and the MEME led us on the way up...and the inverse has been valid.
Source: Refinitiv
Source: Refinitiv
The winner is back
Selling daily puts is back as the biggest YTD winner...but was painful for a lot of people last week.
Source: Nomura
Negative gamma matters
Dealers remain in short gamma and will be magnifying moves both ways. Chart shows a clear picture of how negative gamma impacts markets...
Source: Tier1Alpha
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