Premium"Only Fear Is Of The Right-Tail": McElligott Shows Why The S&P Is Blind To The Carnage Beneath It
What do you call a market where the S&P has gone nowhere for two months, 85% of its members are in a correction, and the only options anyone is willing to pay up for are upside calls? According to Nomura's cross-asset guru Charlie McElligott, you call it 2026.
In his latest "BINARIES" note (available to pro subs), McElligott lays out a market that is simultaneously asleep at the index level and in a full-blown rolling bear market underneath, all while energy - specifically Europe's diesel shortage - keeps the whole thing one headline away from a rates tantrum.