Happy days

No AI... no upside volatility chasing

US is king of AI. Note the difference in upside volatility between SPX and SX5E.

Source: GS

Ex-out Big Tech and we are not even expensive

SPX P/E excluding Big Tech is much closer to the median levels than the headline index.

Source: Barclays

Exclude the top 50...

...and things look rather reasonable when zooming out.

Source: BofA

Irony

Fed BS down, VIX down. Lately they are moving in perfect tandem...

Source: Refinitiv

Happy days

SPX is trading at the same levels we traded at when VIX was at 15 a few sessions ago...but VIX is now some 10% lower...

Source: Refinitiv

Last time VIX was here

You don't compare mean reverting assets (volatility) with trending assets over longer periods, but the short term exuberance by VIX is getting very "impressive". VIX at these levels is pricing "Goldilocks"...

Source: Refinitiv

Soggy Europe

Last time the Citi Europe economic surprise index was here, gas prices were a big issue for Europe.

Source: Refinitiv

Cyclical hate

Cyclical net ownership is in the 1st % tile going back a decade.

Source: Morgan Stanley

Bear markets we remember

This is getting frustrating for the bears out there...

Source: Ophir/Mike Zaccardi

Massively bullish bulls and evaporating bears

We have been waiting for this exuberance to kick in and here it is. Latest AAII bulls showing a huge spike, and bears throwing in the towel.

Source: Refinitiv

See TME's daily newsletter email above. For the 24/7 market intelligence feed and thematic trading emails, sign up for ZH premium here.