The equity market may have 'gone vertical', but they aren't overbought: Mizuho Americas

• The equity market is 'absolutely incredible,' brushing aside high U.S. Treasury yields (10Y at 4.473%).
• Retail 'FOMO' is driving significant chase in memory names (Micron, SanDisk, Seagate) and leveraged ETFs, with daily rebalance volumes reaching $18 billion, $16 billion of which is in tech.
• Despite concerns about leverage, Azarm is not overly negative, citing easing in S&P, Nasdaq, AAII spread, and VIX normalization.
• Short indices, like Goldman's most shorted basket, are seeing significant short squeezes (up 4.5% today), indicating underlying market strength.
• Seasonality (strong period for Nasdaq) and institutional positioning (not overly high) provide a backdrop for potential further upside before a significant pullback.

Farzin Azarm of Mizuho Americas discusses the 'incredible' equity market, driven by retail 'FOMO' and significant inflows into leveraged ETFs. While acknowledging the 'preposterous' levels of retail activity and leverage as a concern, he notes that overall market positioning isn't overbought, and seasonality suggests further upside, leading to a cautiously optimistic outlook.