Everyone Wants To Buy The Dip. There's Just One Problem

Teflon Tech

Tech has ripped back from the late-July lows, but the setup is getting interesting again. NDX is pushing toward the highs while positioning has been cut, flows remain soft and plenty of investors appear to be waiting for a dip that refuses to arrive. Meanwhile, VXN has completely reset.

Chasing spot up here isn't particularly attractive, but neither is sitting around waiting for the perfect pullback. With vol this cheap, options are starting to offer a much cleaner way to play both sides of the next move.