Yulia Slavina

COR1M closes at 6, raising structural warning signs, Lia Holmgren warns

COR1M closes at 6, raising structural warning signs, Lia Holmgren warns
COR1M dip signals risk for AI stocks

Lia Holmgren draws attention to a notable shift in market dynamics, highlighting that COR1M has just closed at 6. She points out that, based on historical patterns, a reading below 8 signals a structural warning. Many traders, according to Holmgren, are concentrating their positions in a narrow group of AI stocks as implied correlation has dropped significantly.

Holmgren cautions that when a macro shock occurs, correlations are likely to surge, potentially creating additional risks for investors focused on these crowded trades.

Holmgren previously assessed equity signals in a note that her scanner app gave CSCO a 99 out of 100 score and detected a strong increase in call buying earlier this year. She has also compared high earners’ purchasing power, stating that $460,000 in France offered more value than $620,000 in the U.S. in a separate analysis.

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