"To Chase Or Not To Chase?" - Goldman's Top Trader On Central Bank Cannons, Elections, & Earnings

Following "another high velocity week" Goldman Sachs head of hedge fund coverage, Tony Pasquariello, notes that a few themes stuck out:

i. the world’s largest central banks are suddenly going farther than the markets expected, as the PBOC followed in the Fed’s wake with a liquidity barrage of their own.

ii. in turn, last week saw very serious technical demand for US equities -- while this week brought a clamor for right tail protection on China and EM -- with elements of animal spirits in both markets.

iii. amidst all of this, risky assets had enjoyed two tailwinds of late: US front end rates melted lower and the JPY was notably well behaved; I now wonder if the former is running low on gas, while the latter has reversed overnight following the LDP election.

iv. within the US equity market: S&P took out the highs yesterday -- as a nascent rotation back into tech stocks continued -- yet small cap has noticeably underperformed following the Fed cut (fine). 

Looking forward, Pasquariello frames the current investor debate in very simple terms: to chase or not to chase?