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Morgan Stanley QDS: US Indices Rebound on De-Escalation of US-Iran Tensions
In a surprise turn of events, the US indices snapped a 5-week losing streak and advanced by around 3% last week, as both the US and Iran signaled a willingness to end their conflict. The SPX, along with gains in AI Tech (MSXXAIB +6.5%), Financials (MSXXFINL+3.9%), and Cyclical stocks (Early Cycle Cyclicals MSXXECYC +2.6%), helped…
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Navigating the Options Market: A Guide to Current Trends and Strategies
In recent months, the options market has seen a significant shift in trends and strategies. According to data from MS PB Content, net equity leverage has decreased since January, raising the bar for additional selling. However, discretionary investors came into March with elevated index and ETF hedges, which helped cushion index-level volatility. In options, customer…
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US-Iran Conflict: Market Intel Reveals New Insights on Military Attacks and Nuclear Threat
The US-Iran conflict has reached a critical crossroads, with decisions on the contours of the Middle East conflict still up in the air. Last night’s speech by President Trump gave us some valuable insights into his thinking, including the likelihood of military attacks and the potential use of ground troops. Firstly, Trump reiterated his threat…
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Market Digests Iran Conflict Heading into Long Weekend
As the market digests the ongoing conflict between the United States and Iran, traders are experiencing a whipsaw effect. Following President Trump’s address to the nation, futures sold off overnight, only to bounce aggressively mid-morning on reports of Iran drafting protocol with Oman for Straight traffic. The SPX gave up 20 basis points after being…
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Navigating Market Volatility: Why Gold Gamma is a Better Bid
As the markets continue to experience volatility, investors are looking for ways to navigate these unpredictable waters. In this blog post, we’ll explore why gold gamma is a better bid right now, based on recent performance and market trends. To start, let’s define what gold gamma is. Gamma is a measure of the sensitivity of…
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US Retail Snap Up ETFs, Sell Energy Stocks: A Shift in Investor Sentiment?
As the ongoing US-Iran conflict continues to weigh on investor sentiment, UBS’s US retail market making clients recorded $164 million net inflows into ETFs on Wednesday, the largest single day of inflows for the year. However, this positive momentum was largely offset by record daily outflows from oil and gas equities, totaling nearly $800 million…
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Market Mania Continues: Trump and Iran Drama Sends Prices Soaring
The market is on fire today, with prices surging to new heights amidst the ongoing drama between President Trump and Iran. The tension between the two nations has investors flocking to safe-haven assets, driving up the price of gold and other precious metals. The S&P 500 is also having a strong day, with many stocks…
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Nike’s Turnaround Journey Continues to be a Work in Progress, Analyst Says
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…
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Correlation Breakdown: S&P 500 Rallies Despite Oil Price Hike
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…
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Risk Parity Unwind: A Strong Recovery Month Typically Follows
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…
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