It has been quite a week. The market is unwinding some of its most optimistic assumptions and the raging momentum trade that dominated dozens of assets has run out of gas. Gold and silver peaked first, then RGTI and the most-shorted / least-profitable stocks, and finally the AI favorites, Korea, and Japan. Momentum trades printed money for hedge funds, CTAs and retail for several months, and the market back-fitted narratives to try to justify them (it’s a DeBAseMenT trade!) In reality, GLD calls from retail drove the last $300 of the rally in gold, FOMO drove the ridiculous rally in ORCL, and the jury is still out on ... (full story)