Submitted by Lance Roberts via RealInvestmentAdvice.com,
As discussed yesterday, the exuberance in the markets, as witnessed by the net positioning of large speculators, has reached records on both ends of the spectrum. Those extremes, combined with spiking levels of “hope” in both the financial and economic data is all too reminiscent of the past.
S&P equity futures followed Asian and European stocks lower, driven by weakness in Franch and Italian markets, as French political concerns returned; the pound tumbled after UK monthly retail sales unexpectedly dropped pushing the dollar higher and Euro lower.
Once again all eyes were on "soft" data (Philly Fed) as "hard" data (housing starts miss) disappointed and the forced buy-in pressure lifted...
In an ironic twist of fate, it appears the catalyst for many of the biggest and most incomprehensible market ramps of the last few years is a fund called "Catalyst." With around $4 billion under management (before the latest collapse), the levered options fund is run by Edward Walczak who "uses options to create a better risk/return profile."
Apologies for earlier error in title.
Surging inflation, plunging real wages, jumping mortgage delinquencies, and record crude and gasoline inventories... then Trump drops the 't' word and the market melts up...