According to Goldman Sachs, the SPX is following its expected trajectory, with some slight deviations. Recently, there has been a significant influx of funds into equity funds, the largest in two weeks since February 2022, as reported by Bank of America. Investors are showing a particular preference for technology funds, adding to their positions. In the hedge fund industry, there has been a doubling of weight on mega-cap stocks in long positions this year, suggesting continued trust in these companies. However, NVDA (Nvidia) has been underperforming, raising concerns about the market’s stability. Over the past month, investors have been chasing stocks and reducing downside protection, which has often resulted in the market pausing or reversing. The VVIX vs VIX ratio has experienced a significant increase in November, closing at 6.66 today. Additionally, the MOVE vs VIX ratio has reached all-time highs. For more detailed insights, readers can refer to TME’s daily newsletter email or sign up for ZH premium’s 24/7 market intelligence feed and thematic trading emails.
