After July's Plunge, Funds Chase Gains Again, US Stocks' "Fear Index" Plummets, Yet Wall Street Begins to Beware

The strong rebound in US stocks has created a false calm of plummeting volatility, but Wall Street is sounding the alarm: the options market has shown a "biblical" level of bullish chase distortion. Beneath the surface prosperity, market positioning is extremely fragile. With Nvidia's earnings report and the central bank annual meeting approaching, any external catalyst could trigger a violent one-sided storm at any moment.