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**Bonds & VIX Dumped, Bitcoin & Stocks Pumped As Stagflation Signals Soar**

Bonds & VIX Dumped, Bitcoin & Stocks Pumped As Stagflation Signals Soar

**Ugly** growth (GDP), **uglier** inflation (Core PCE), **ugliest** housing data (pending home sales), and **ugliest-er** manufacturing sentiment (KC Fed)... but hey, META beat so BTFD in Mega-Cap Tech...

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_**META is up 15% because their earnings dropped 20% but they mentioned AI 57 times.**_

That helped Nasdaq extend its outperformance (best day since Feb 2nd). The S&P managed a 2% gain before limped lower into the close and Small Caps were the solid runners up in the squeeze race today... The Dow, S&P, and Nasdaq all just took off as soon as cash trading opened...

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Today's rampage saw S&P and Dow get back to even on the week while Small Caps lag as Nasdaq soars. Notably, S&P and Dow stalled perfectly at unch and held it, unable to push higher...

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Nasdaq is back at recent highs...

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There was a notable divergence between 0DTE VIX and 'Old' VIX (the latter offered as the former was bid)...

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_Source: Bloomberg_

Under the hood, this had the **smell of 0DTE call-buying** and longer-dated put-covering (both implicitly positive delta and supporting the rally). Notably, **later in the day, 0DTE saw major put-covering also as call-buying faded**...

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_Source: SpotGamma_ (https://spotgamma.com/hiro-indicator/)

This was also notable, given the rise in 0DTE today. Ultra-short-dated options vol has been an early warning system for 'event risk' over the last year....

> VIX1D Post! The CBOE has generously back-filled the data for a year. And in the process, they've made it easy to illustrate a theme we followed closely over this time period, namely that "event risk" was priced into ultra-short dated SPX vol as a function of FOMC and CPI day pic.twitter.com/yRwHpm3BaK (https://t.co/yRwHpm3BaK)

> — Alpha\_Ex\_LLC (@Alpha\_Ex\_LLC) April 26, 2023 (https://twitter.com/Alpha_Ex_LLC/status/1651360536632737792?ref_src=twsrc%5Etfw)

Treasuries were clubbed like a baby seal today with the short-end underperforming. 30Y yield is almost back to unchanged on the week (while the short-end remains notably lower)...

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