The market has felt speculative since year-end. Increases in equity options volume supports this view. Animal spirits have not been sufficiently stomped out by the Fed.
December 2022 saw 797 billion in equity options volume. That metric increased to 851 billion in January 2023 as investors juiced positions with options trades (see chart below). It feels as though this market is cherry-picking good news while turning a deaf ear to negative news. Reach us at firstname.lastname@example.org if you wish to see the data that underlies the below chart.