The Tech Trade Rolls On

J.P. Morgan reports that the Tech trade continues with significant momentum, driving US and Japan positioning toward extreme highs while Europe remains at lows. Global hedge fund flows were slightly positive, primarily led by net buying in Tech and Asia ex-Japan.

Key Takeaways

• 1.Tech positioning is extremely bullish across hedge funds and retail, with hardware and semiconductors reaching historical highs in specific regions like Asia ex-Japan.
• 2.US-Europe positioning disparity has reached an extreme (8th percentile), potentially indicating a setup for reversion, though fundamentals currently support the US.
• 3.Hedge fund positioning in Japan is at extreme highs (99th percentile Long/Short ratio), which historically precedes positive but moderated 3-month forward returns.

Table of Contents

• POSITIONING INTELLIGENCE
• DISCLOSURE

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