The power of the MOVE
Regular readers of TME are familiar with the fact bond volatility is a very important part of the puzzle for the latest squeeze. Bond volatility remained at elevated levels despite a lot of other asset vols had come down. Late last year we wrote (<a href="https://themarketear.com/posts/c3hhNAyihR" rel="noopener noreferrer" target="_blank">here</a>) "...bond volatility (MOVE) is one of the most important factors to watch. Tech is the pillar of this market and ever since bond volatility started moving sharply higher, the NASDAQ has traded poorly.... If bond volatility manages to calm down slightly, things could spill over to NASDAQ." Back then the MOVE was around 150. It closed at 97 yesterday. NASDAQ has caught up to the MOVE, but the gap remains wide. This doesn't mean the gap must be closed, but it shows you that MOVE matters...
