Admittedly I’m a bit late to the game but over the weekend I finally did it. After a slow-ish August week, I felt the need for speed. The sequel to the iconic 80’s movie based on the elite Navy pilots included all of the sentimental checks: breathtaking fight scenes in the sky, a cheesy beach montage and of course, Tom Cruise’s impish grin. The 2 hours of brain candy come highly recommended. Markets were feeling similarly nostalgic to start the week, and by nostalgic I’m of course referring to the meme mania from last year. All the familiar faces from wat back then were here for it. There are even rumors that fashionable trade of buying out of the money calls was back ‘en vogue’ after taking a long hiatus. Why now? Much like the producers of a sequel 36 years after the first, the answer is most likely, why not? Despite the roster of Fed speakers last week doing their best to suggest a pivot was not in the offing any time soon, the retail army forged forward but they were far from alone. There were a host of risk on signals to help lift equities early on. The 10-yr yield resumed its descent despite practically the entire Fed roster exhorting the market they were not done on hikes. Palladium is making 3m highs while US high yield credit spreads are lower for the 4th straight day – a break below the May lows would provide another. Things were going swimmingly early on, with all eyes on the S&P as it broke through key levels (4177/4200)…
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