Can we please move?
Consensus on board the "Fat & Flat" train...
Morgan Stanley reports that clients broadly expect a range trade at the index level but with low conviction levels (3800/4200 range). Mike Wilson notes that there is little appetite to dive back into areas that have underperformed like small caps, regional banks, and lower quality cyclicals … large cap tech remains well owned + little demand for traditional defensives. (Morgan Stanley)
Casualty of boring
Last week Nomura's McElligott showed that options sellers are back as "winners". Index is extremely boring, and theta panic is kicking in big time. Chart shows the SPY and the SPY June 411 call since early April.