FAST FIVE: Saxo Bank: "We Are Putting Out An Early Warning: A Sharp Correction In Equities Could Be Imminent"
Saxo Bank: “We Are Putting Out An Early Warning: A Sharp Correction In Equities Could Be Imminent” Submitted by Peter Garnry, Head of Equity Strategy, Saxo Bank Equities are getting frothy with short squeeze and momentum accelerating technology stocks higher.
This has led to the highest top five concentration in the S&P 500 eclipsing the dot-com bubble in a sign of destabilisation and increased fragility.
In today's equity update we also talk about equity valuations and earnings season.
In higher echelons of the market the FANG+ Index is accelerating at an unprecedented pace showing clear signs of frothy behavior.
In VIX we are observing a increase in net positioning although from a very low level but could signs that bigger players in the futures and option markets are preparing for increase in volatility.