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Seth Golden posted an update 4 years, 5 months ago
Nomura: As we have been explaining over the past weeks, the crash caught 99.9% off guard. The squeeze that followed made it even worse as so many puked the lows and want to buy that low again.Sure, we might go down again, but a lot of the “ingredients” going into the crash are gone.
Dealers are now getting more long gamma and will make ranges tighter (people are getting involved in overwriting strategies, using still elevated vol), CTAs are running low risk in equities and guys like risk parity are running extremely low risk.
Expecting the “same to occur” just because you missed it is not rational.