Call volume in $SPX continues to surge to new all-time highs
Recently rising to $700B in a single day of notional value exchanged on the call side pic.twitter.com/71H6dvYdqs
— Markets & Mayhem 🤖 (@Mayhem4Markets) June 6, 2023
The short vol trade (long $SVXY here) has had a nice run and is extended (outside 3 ATR Keltner Channel). Just be careful out there. pic.twitter.com/VfkzIhCnVe
— Jim Carroll (@vixologist) June 6, 2023
4 trading days in June and near 22% down – Just suck it up! $VIX pic.twitter.com/AxeifwAWyc
— Vik Soien (@VSoien) June 6, 2023
Main Street traders are taking big risks. They might not pay off
New York
CNN
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“Sell in May and go away” — shorthand for the idea that US stocks rise more between November and April than over the summer — is one of the most oft-repeated adages on Wall Street.But Main Street isn’t listening.
New data from TD Ameritrade shows that retail investors shrugged off US debt ceiling uncertainty and recessionary fears last month as they increased their exposure to markets.
What’s happening: May was a mixed month for US stocks. The debt ceiling debate and the possibility of a US default unnerved investors and ruffled markets. Economic data beat expectations and inflation remained sticky, boosting fears that the Federal Reserve would raise interest rates once again. On top of that, regional banking worries were revived when First Republic Bank failed at the beginning of the month.
The Nasdaq Composite managed to gain 5.8% on the back of a boom in AI stocks and strong tech earnings, but the S&P 500 was essentially flat and the Dow ended May 3.5% lower.
Still, retail investors increased their exposure to stocks last month and were the most bullish they’ve been in a year, according to the TD Ameritrade Investor Movement Index for May. That index aggregates Main Street investor positions and activity to measure how they’re positioned in the market.
On the final day of May, retail investors alone had a net flow into equities of $1.48 billion, the highest in about three months, according to VandaTrack Research, a financial data company