A Turnaround in Shorts: From Aggression to Capitulation

Time to Talk All-Time Highs?

NASDAQ is trading right at these key levels.

Leverage Is Back

“Net leverage exposure across the full PB (prime brokerage) portfolio rose by over +8 percentage points in May — the largest monthly increase in our data — driven by strong global net buying and mark-to-market revaluations.”

Short Squeeze

From a massive build-up in short positions… to a massive unwind.

Who’s ‘Dying’?

VVIX is “dead.” VIX holds its “natural floor” while VVIX keeps falling.

American Exceptionalism

Does this look “dead”? Not quite, right?

In the US We Trust

At least some still believe in the American exceptionalism narrative.
Goldman Sachs:

“North America saw net buying for the first time this year, and recorded the largest nominal net buying in our data, entirely driven by long positions.”

Silver Catch-Up Trade?

Even partially closing the gap with gold could be a major catch-up trade for silver.

EM – Mean Reversion King

EEM is trading in a massive consolidation range, with breakouts in both directions that often reverse.
We’re now at the top of the average range again.
A breakout above $46 could trigger a more aggressive squeeze.
Full EM note available here.

Double Top?

The euro printed a relatively large bearish candle today.
While the uptrend remains, there’s a negative RSI divergence that shouldn’t be ignored.
Will this turn into a double top?
In the end, everyone hates the dollar and loves the euro.

Undervalued USD

The U.S. dollar still lags behind certain valuation metrics.