DC Lite #281

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1. Alt Inflation. "Plugging in more real time data on shelter, headline inflation improves from 2.9% to 1.8%. Core inflation improves from 3.2% to 1.9%."

2. Real yields. "The 11 basis point drop in real yields today was the biggest one-day drop since December 2023."

3. Dealer gamma exposure. "Index gamma is now short (-$700m) for the first time in 2025, is and highest short since 30Dec24 and 18Sep24. Our model has gamma positioning increasing on moves lower and getting shorter on rallies."

4. New highs vs. new lows. New highs now exceed new lows across 1, 3, 6, and 12 month timeframes.

5. Valuation mean reversion. “There is no evidence of mean reversion in equity valuations; valuations do not have to revert to any long-term mean over any specific horizon.”