Some folks' stocks turmoiled but the message is clear...
Mixed bag on the week with Trannies tumbling most since Brexit, Dow outperforming on earnings beats, and tech weighing on Nasdaq and S&P...
No fundamental catalyst for today's tech wreck (just as there wasn't last time), but many people noted the coincdental timing of JPM's Kolanovic note on Vol fragilities coincided with the start of the pain...
Liquidity collapsed leaving many to think...
Back in March 2015, Howard Marks was among the first to sound the alarm on the encroaching danger posed by both ETFs in particular, and passive investing in general, when he memorably asked (rhetorically, for now), "what would happen, for example, if a large number of holders decided to sell a high yield bond ETF all at once?" and answered his own question:
Relax, we got this...
For the last two years, short interest in the US stock market's largest ETF has collapsed as bears have been squeezed back to their lowest level of negativity since Q2 2007 (the prior peak in the S&P). But, there's a bigger issue - despite record highs and 'no brainer' dip-buying, anxious longs have dumped S&P ETF holdings for four straight months - the longest streak since 2009 - seemingly confirming Canaccord's recent finding that "it's not complacency, it's paralysis."