"Dealers are short calls due to unprecedented call activity and as a result have been forced to chase stocks higher to hedge. The unwind could potentially be violent given all the excess euphoria.."
"The amount of hidden negative convexity in equity markets is ominous. Passive flows within highly concentrated indexes are elevating correlations & ruining diversification. Current option flows (Gamma), deteriorating market depth,&fat vol tails creates a fragile market."
Three percent of the #Russell 2000 Index’s component stocks closed Monday above their 200-day moving average, a gauge of price trends, according to data compiled by Bloomberg since 1995. *The reading exceeded a peak of 92.8% that was set in September 2003.