Mid Week Thoughts

Not long and we will be so back

Markets remain cautious, with participants struggling to commit. While the recent CPI data cooled inflation fears a bit, the tariff sword hangs overhead, tempering enthusiasm. CTA selling pressure, which has recently dominated market flows, is finally dying off as CTAs are now short. Goldman notes that systematic selling in U.S. equities is nearing extreme levels, historically pointing to trend exhaustion (time for a reflexive move up). With a few more quieter days, Vol Control will be re-engaging as buyers.

Most still hesitate to dive in fully; headline risks persistently dampen confidence. Markets have shown resilience this week, but participants remain wary of fully buying the dip until there's clearer visibility on the tariff front and their impact.