According to The Kobeissi Letter, the 1-month correlation between the S&P 500 ETF (SPY), the popular bond ETF (TLT), and the US Dollar Index (DXY) has surged to 0.2 points, reaching the highest level in at least six years (source: The Kobeissi Letter, April 28, 2025). This marks a significant reversal from a previous negative correlation of -0.3, signaling a potential shift in market behavior. Traders should note that higher correlations across equities, bonds, and the dollar may reduce diversification benefits and could indicate increased risk-on or risk-off moves impacting all major asset classes simultaneously. This development warrants close monitoring for portfolio hedging and risk management strategies.

According to The Kobeissi Letter, there was a notable $10 million spike in put options on the S&P 500 ETF ($SPY) shortly after the White House announced a press briefing with a 'Special Guest'. This activity mirrors a similar trend previously observed in $QQQ options before Nvidia's announcements, indicating potential market volatility. Traders should closely monitor these developments for strategic positioning.