IBAFIN

As Nike continues to navigate its turnaround journey, one analyst remains skeptical about the company’s ability to deliver on its growth promises. According to Jay Sole of UBS, the stock may pull back in the near term due to revised down EPS estimates and a lack of visibility into the company’s future performance. Sole notes…

Yesterday, we discussed the correlation breakdown between equities and oil prices. Today, we’re seeing a continuation of this trend as the S&P 500 rallies despite a hike in Brent oil prices. The S&P 500 is up 1.3%, with both the SPY and QQQ closing at their lowest RSI reading since Liberation Day. Meanwhile, yields continue…

The recent Market Internal Insight from UBS S&T highlighted the unwind of risk parity funds, which has been under pressure to deleverage due to rising volatility and correlation across asset classes. However, history suggests that a strong recovery month may follow such an extreme unwind. Risk parity funds typically invest across asset classes with roughly…

Market sentiment took a significant hit this week, with dealers shorting gamma in the front end of the options market. This move has been one of the sharpest drops we’ve seen in recent history, with a staggering $7 billion difference between sessions. Our client base is feeling weary about the current state of the market,…

Positioning pain continued today as momentum sharply lower and crude higher (WTI at $105) created a challenging environment for traders. According to GSPRHIMO, the move was one of the worst 1-day moves in nearly 5 years, with the 3-day move approaching -15% (the second-worst since Covid). Memory remained at the epicenter of the long momentum…

As we approach the end of February, investors are facing a unique market dynamic known as “short gamma.” This term refers to a situation where the market is positioned to sell risk as prices decline or buy risk as prices rise, leading to amplified directional moves. Currently, the market is short gamma on the upside,…