Premium"Largest In Our History": Nomura's McElligott Calculates Historic End Of Day Levered ETF Buy Rebalance
This article is so good
it's for premium members only.
Does that sound like you?
Already a member? Sign in.
PREMIUM
ONLY $30/MONTH
BILLED ANNUALLY OR $35 MONTHLY
All BASIC features, plus:
- Premium Articles: Dive into subscriber-only content, market analysis, and insights that keep you ahead of the game.
- Access to our Private X Account, The Market Ear analysis, and Newsquawk
- Ad-Free Experience: Enjoy an uninterrupted browsing experience.
PROFESSIONAL
ONLY $125/MONTH
BILLED ANNUALLY OR $150 MONTHLY
All PREMIUM features, plus:
- Research Catalog: Access to our constantly updated research database, via a private Dropbox account (including hedge fund letters, research reports and analyses from all the top Wall Street banks)
Just minutes to go until the close so we'll make this quick: Nomura's cross-asset guru Charlie McElligott has calculated today's various Market on Close imbalances and has come up with a stunner.
According to Charlie, potential options dealer hedging/leveraged ETF rebalancing/CTA signal, all of whom have recently flipped short, are facing (cover)-to-long projected MECHANICAL “BUY flow” updates in Equities on the Trump Tariff goodwill pause / lowering of reciprocals move, with Nomura calculating some "WILDLY LARGE" $notional numbers from these sources of both “real” and “synthetic” Negative Gamma,in this case, all needing to “buy more” the higher the market goes, to wit:
- Leveraged ETF EOD Implied Rebalancing +$34.3B
- CTA Trend flip Short to Long Aggregate in Global Equities Futures +$35.3B
- Single-name Options Dealer Negative Gamma Hedging in “Mag-8” +$36.3B
- SPY Options Dealer Negative Gamma / Customer Call buying +$7.4B