The painful upside
The crowd is short
Once again, the crowd is short via delta 1 products. This trend has been going on for some time. This is part of the reason SKEW index has continued to decline as people do not buy downside protection. Instead, they have been "forced" to cover the possible upside risks via buying calls. First chart showing GS PB long/short ratio vs SPX open interest (calls). Second shows the crashed SKEW index.