"The Hypothetical Nightmare Scenario": McElligott Explains The Danger In Chasing The AI Gamma Squeeze

While not nearly as ridiculous as last Thursday, when the gamma squeeze sending megacap tech names surging by hundreds of billions every day went full retard as shown in the following Apple call volume chart...

If you don't gamma squeeze the world's biggest company do you even market bro? pic.twitter.com/vDYaavW1bB

— zerohedge (@zerohedge) June 14, 2024

... Nomura's Charlie McElligott writes that this week we have seen more of the now familiar "spot up/vol up" dynamic, and while we are finally getting larger magnitude down days in Index trading - with Index Vol then moving higher on those days (i.e. the more traditional negative Spot / Vol Correlation) - at the single stock level not much has changed and the dynamic remains familiar among AI / Semiconductor names which are leading the Index rally, "as investors continue to grab into upside in those AI –tied names which are hoarding Index gains."