On Tuesday evening, I cautioned against the overriding tendency to couch the bounce in US equities in terms of "optimism" on trade.
It's fine to explain a rebound in terms of a shift in the market narrative, but only if there is in fact a perceptible shift, and as of Tuesday, the outlook for the Sino-US trade spat had not improved - at all.
Rather, I suggested Tuesday's rebound was probably down the monetization of hedges (which would have been especially enticing considering how well they would have performed on Monday), profit-taking on long-vol. trades