Stressed NASDAQ - is upside still the main pain trade?
As we showed earlier this week (thematic email sent to premium/pro subs) NASDAQ stress has risen big time during the latest Tesla "confusion".
Part of the rise in index vols, especially NASDAQ vol, has been due to the huge call options bonanza in some of the tech giants.
Anyway, NASDAQ's perfect short term trend channel remains intact, but note VXN remains rather elevated (still).
Noteworthy is the fact tech has seen huge outflows lately (chart 2).With strong seasonality still in motion, the upside in NASDAQ could become the final big pain trade of the year.After all, seasonality has worked very well...
Part of the rise in index vols, especially NASDAQ vol, has been due to the huge call options bonanza in some of the tech giants.
Anyway, NASDAQ's perfect short term trend channel remains intact, but note VXN remains rather elevated (still).
Noteworthy is the fact tech has seen huge outflows lately (chart 2).With strong seasonality still in motion, the upside in NASDAQ could become the final big pain trade of the year.After all, seasonality has worked very well...
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