The Market Ear
May 25, 2026
The 1997 Melt Up Is Back
Market ReportEquitiesRates Govt BondsVolatilityInformation TechnologyIndustrials
Investors are aggressively chasing market upside in a pattern reminiscent of the 1997 melt-up, ignoring record high bond volatility and a contrarian sell signal from BofA's Bull & Bear indicator.
Key Takeaways
- 1.The current market pattern is closely mimicking the late-1990s melt-up, specifically 1997.
- 2.Investors are aggressively buying call options and discarding downside protection despite rising bond volatility.
- 3.BofA's Bull & Bear indicator has triggered a contrarian sell signal by reaching a level of 8.0.
Table of Contents
- 1997
- Call options mania
- Protection aversion
- Sorry bears
- Rates don't matter?
- Bond vol screaming
- AI is inflationary
- Falling behind
- The king of sell signals
- Got VIX hedges?
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Authors
Author(s)
Securities
SPXVIXMOVESamsungUS 10-year yield
Themes
Historical Analogs (1997 Melt-up)AI as an Inflation DriverMarket Sentiment Extremes
Regions
North AmericaAsia PacificUnited States