TMTB EOD
Another unwindy day in the QQQs — they only ended down 10bps but underneath the surface was the worst 2-day unwind in at least 8 years of crowded longs vs. crowded shorts, according to BAML, who also said today’s flows set a YTD record. A mix of tomorrow’s quarterly rebalance, more dovish fed, move in yields, a miss in ADBE (a top constituent in most long Gen-AI baskets), and inflows into YTD laggards all exacerbated the move. Anything yield sensitive ripped as yields fell another 5-10bps across the curve. SPX ended up 27bps, but equal weighted version of the index surged 130bps and Russell +270bps. ARKK +3.7% vs QQQs down 10bps says it all…
Majority of the moves today driven more by factors, but I’ll do my best to recap:
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