S&P 500

Earlier in the week we noted the 'odd' surge in downside protection demand even as tech stocks were soaring, and now JPMorgan is noting the S&P has shifted to a large 'negative gamma' underhang which "could boost volatility if we were to sell off."

As Bloomberg notes, options markets suggest a lack of confidence in the rally. Traders are piling into downside hedges on every uptick in prices...

And JPMorgan derivatives desk writes:

It was another painfully low-volume overnight session, which however did not prevent global stocks from hitting another record highs, capping their best week in over two months as the dollar stayed close to nine-month lows following Yellen's dovish retreat in which she noted caution on persistently low inflation (hence today's CPI print will be especially important) as odds of future rate hikes in 2017 and 2018 dropped.

Authored by Steve St.Angelo via SRSroccoReport.com,

There are four interesting developments taking place in the gold and silver market that precious metals investors should be aware of.  While Americans continue to place all the bets in the casino called Wall Street, via stocks, bonds and real estate, the Easthas been acquiring record amounts of gold and silver.  Furthermore, something interesting seems to have changed recently in the Silver Eagle sales market.

Tech stocks are up once again - for the 5th day in a row, the longest streak since May - as the business media celebrates FANG's rennaissance (again)...

There's just one thing that is 'odd' about this rally, traders are piling into downside hedges on every uptick in prices...

As Bloomberg notes, options markets suggest a lack of confidence in the rally.

Remember the 2007 Bubble?

Remember how everyone said that it really wasn’t that big of a bubble because stocks weren’t as expensive as they had been during the previous bubble (the Tech Bubble).

We all remember how that turned out: the bubble burst leading to the greatest financial crisis in 80 years.

Well, today’s bubble is WAY larger than that of 2007. And arguing that stocks are cheaper than they were during the Tech Bubble doesn’t hold water anymore either.