Beware The "Broadening Out" Of The Rally Narrative: Nomura Warns "There Isn't A Lot Of Room To Vol To Reset Lower"

An upside surprise in Retail Sales (plus positive revision for May) kills off the “worst fears” of the “cracking consumer”-theme (today) from an Equities Index perspective (esp after the ugly China data and European Luxury disappointments / negative preannouncements WTD), in what Nomura's Charlie McElligott sees as a “Goldilocks” -type response, seeing Stocks holding higher on the session…

The “speculative frothing” on Fed easing odds and Trump election prospects is evident: Crypto, not surprisingly... as well as a fresh “Net Up” in broad US Equities exposure, as so much of “Short Alpha” this year was crowding into Small Cap / Value / Economically-Sensitive / Unprofitable / High Vol -names….which are now squeezing powerfully from this positioning dynamic (much more about positioning than viable regime change / economic growth inflection)...