Vol Control Funds Have Room to Drop Risk Exposures
Despite Monday's rebound, funds may continue to degross
U.S. equities rallied large with the SPY, QQQ and IWM all rebounding over 1% after last week's brutal selloff. Yesterday made it look like bears had weak paws, but there are several factors bubbling up that can keep equities volatile for some time.
Small Caps Rip, China Dips. Rotation In The Works?
Later today, I'll be putting out a piece on the growing concerns I have with what's going on with the AUDJPY.
VIX pulled back from 16.5 to 15, but ATM vol curve remains elevated and well above the 20-day average.
SPX was able to bounce of the 5,500 put wall, and it's hovering underneath the 5,565 gamma flip (from neg. to pos.). AM future markets are red, but a push above the gamma flip can pull the SPX to large gamma strikes at 5,600 and, potentially, 5,700.