In a context where the Dow Jones notched its seventh straight day of gains and its longest winning streak since March 2021, there are multiple signs that optimism about US Stocks has gained traction since several weeks. According to several measures, investors’ exposure to US stocks has increased amid improving sentiment while options’ market has pointed to lower demand for hedging against downside (at least for indexes).
American retail investors have become more positive, generating a contrary signal, and ETF and mutual fund flows have turned positive, pushing the Fear & Frenzy further towards Frenzy.
🇺🇸 The Nations SkewDex, which is a proxy of long put demand, reached the lowest level since data are recorded – Bloomberg data *Note: The Nations SkewDex compares the cost of out-of-the-money #SPY#put options to the cost of precisely at-the-money SPY options. pic.twitter.com/LRqY9n69u9
— Christophe Barraud 🇫🇷 🇲🇨 (@C_Barraud) July 18, 2023
