Login with your ZeroHedge Premium account

Sign up here for the free newsletter

{{message}}

Subscribe with a new email
      JPM: Liquidity to further propel equities next year

      Nikos, the Flow-Show God at JPM shoots an arrow through the heart of the last of the Mohicans. It sounds so easy and good and consensus but it might still be right...

      1. Gradual decline in uncertainty from the very high levels seen before the US election would likely amplify equity and risk markets going forward by reducing the need for precautionary savings over time.

      2. This means that a greater portion of the liquidity that has been injected so far as a function of QE and credit creation, would be deployed into higher yielding non-cash assets such as equities into next year.

      3. Indeed when we update our fair value model for the S&P500, we find significant upside for equities into 2021

      JPM: Liquidity to further propel equities next year
      Source: JPM
      Mighty KWEB

      China tech continues moving higher post that great break out we outlined early last week. Chart 2 shows BABA, a play we pointed out in late August (here). The stock broke above huge resistance levels and momentum is huge. Our general take on China tech (BABA included) is to not forget to roll those call spreads into higher strikes as we move higher.

      Mighty KWEB
      Source: LSEG Workspace
      Mighty KWEB
      Source: LSEG Workspace
      You are here

      VIX seasonality is about to kick in right now...

      You are here
      Source: Equity Clock
      VIX speculators mania

      Slightly simplified way of looking at things as there are many offsetting positions in the volatility world, but still worth taking a look at the great VIX spec short.

      VIX speculators mania
      Source: LSEG Workspace
      The VIX shorty

      Dealers running big VIX call shorts..."VIX total Vega to buy in a +10 shock now at 91% btwn ETNs and Dealer options positioning".

      The VIX shorty
      Source: Nomura