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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.