Zero Day Options (0DTE) now account for half of total SP500 options volume
Source: Barchart
$100k invested in the S&P 500 ETF 30 years ago would be worth over $1.7 million today
Was the road to 17x growth a straight line? Far from it as shown on the chart below by Charlie Bilello.
The S&P 500 index dropped 2.9% over the week
That marked the third straight negative week and worst weekly performance since March. Is the Head & Shoulders pattern in the S&P 500 playing out? Source: barchart
The worst weekly performance since March for the sp500...
Markets like clarity and hate confusion. The first half of the year was about disinflation + AI buzz. Now the markets are not sure about what's next. And some of the confusion seems to be coming from central banks... This week we got a very confusing message from the #fed: a pause in rates, higher dot plots in 2024 but also calling a soft landing NOT a base line expectation, hence sharing fears that keeping real rates for a long period of time creates some downside risks for the economy and the markets... The combo higher inflation risk + downside growth risk is not a great value proposal for Mr Market at the time you can nicely paid by keeping your assets in money markets funds... Source chart: Bloomberg
Another Powell Fed Day
Incredible how closely today's action tracked the average. Source: bespoke (read "today" red line as yesterday)
Heat map of the S&P 500's $SPY performance so far in 2023
Source: Evan, Bloomberg
The 10 largest companies in the S&P 500 now make up 34% of the index with an average P/E ratio of 50x
This is the highest percentage since 2001 during the Dot-com bubble. Even in the 2008 bubble, this percentage peaked at ~26%. These same 10 companies have accounted for ~80% of the Nasdaq's entire rally this year. Markets are increasingly held up by a few stocks, particularly in the technology sector. Source: The Kobeissi Letter, Apollo
The $VIX ended the day at 12.82, its lowest close since January 2020
Source: Charlie Bilello
