TMT Trading Notes And Flow Bullets

The AI trade underwent a significant stress test on Friday, characterized by high volatility and record put option activity. Market sentiment remained balanced despite the pressure, though the influence of levered semiconductor ETFs on price action is drawing increased scrutiny.

Key Takeaways

• 1.The AI trade experienced a significant test on Friday driven by strong payroll data, AVGO earnings, and rising token costs.
• 2.Institutional investors displayed disciplined behavior with balanced two-way flow in Tech/AI despite sharp volatility.
• 3.Record-breaking put volume in QQQ and SPY suggests a market-wide rush to hedge downside risk without necessarily exiting positions.

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