S&P average single-stock 1m put-call skew has now collapsed to the lowest level in Goldman Sachs entire dataset.
Translation: Everyone is a bull.
Source: Goldman Sachs
Calls have made up 70% of all options traded today.
Below is a visual breakdown of the call chase & put hate. One of the largest divergences ever!
Just prepare for mean reversion, especially once we move beyond the largest IPOs in history being launched in June.
Have a great weekend!
THIS IS INSANE.
The smart money is running for the exits in semiconductors and nobody is paying attention.
Last week the SMH ETF saw its largest single-week outflow in its entire 14 year history.
$2.3 billion pulled out in 5 trading days.
What makes this even more interesting:
The week before, SMH had its 3rd largest weekly inflow on record at $1.5 billion.
So in 2 weeks, money rushed in and immediately RUSHED BACK OUT.
Thatโs not how investors behave when they are confident.
That is panic and profit taking happening at the same time.
Zoom out:
In April, semiconductor ETFs collected a record $4.7 billion in combined inflows across SMH and SOXX.
That was the most, EVER.
Now in just a few weeks, $8.9 billion has been pulled back out.
The leveraged 3x semi ETF SOXL has posted 5 consecutive weeks of withdrawals.
Retail traders are clearly locking in profits after the parabolic run.
This is the part most people miss:
Money flow is one of the most reliable leading indicators in markets.
It moved aggressively into semis at the top, now it is moving aggressively out.
If you want to know which stocks weโre buying next, turn on notifications this is VERY important.โโโโโโโโโโโโโโโโ
Many people will wish they followed us sooner.
Bubble trouble. ๐ซง
๐จSOX Monthly Candle Just Printed a Major Warning.
For the first time since the 2000 Dot-Com bubble, the Philadelphia Semiconductor Index has closed a monthly candle 13% above its upper Bollinger Bands.
This has only happened once before .. at the peak of the Dot-Com mania.
Key signals flashing:๐ฆ
Valuations at Dot-Com era extremes
RSI approaching its highest level in 20 years
Classic 10%+ monthly blow-off extension met.
(A comprehensive subscriber Market report drops soon ... followed by a full suite of charts.)
She's beautiful .
Yours truly,
The Great Martis โจ