Pretty wild stats on market positioningDecember historically tends to be a “momentum” month due to tax lost harvesting and end of year reporting (companies want to own winners and sell losers)Could this set up for a big reversion to the mean (ie big tech crash) in the new year, or are we betting that the momentum continues?
“POSITIONING – U.S. Equity CALL Option Volumes just ramped to an ALL-TIME HIGH (which is a long time), Hedge Fund positioning in Mega Cap Tech as a % of their Single Stock Exposure = 99% (another ALL-TIME HIGH), and consensus doesn't own real protection here with implied vol trading at -20% to -34% DISCOUNTS vs. Realized Vol on IWM and XLRE.”
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