The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members
The video in this report is only accessible to members

VIDEO: We discuss 5 reasons we believe the painful de-leveraging process might be nearing an end

Please click below to view our Macro Minute (duration: 5:29).

The video in this report is only accessible to members
The video in this report is only accessible to members

As many are aware, we have viewed the bleeding of stocks in the past two weeks as part of a painful de-leveraging process. This stems from the dual growing risks of (i) disappointment around inflation trends and (ii) growing geopolitical risk. And as such, this is causing investors to de-risk after a strong first 3 months of 2024.

There are 5 reasons we believe this de-leveraging might be closer to ending:1. Spot VIX could be moving below 18, coupled with US yields flattening2. VIX term structure (4M less 1M futures) is uninverting3. Equity declines accelerating to downside as 5-day rate of change -3.6%4. CBOE Equity Put Call ratio hit 1.13, recently sign of tradeable low5. The cycle studies by Mark Newton, Head of Technical Strategy at Fundstrat, show potential low in 1-3 trading days The last time the VIX term structure (4M less 1M) inverted, then uninverted, was March 2023 and that represented a major low. The uninversion shows markets see lower probabilities of a major high volatility event in the near term. De-...

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