The Selloff Thesis Meets an Inconvenient Set of Charts

The report highlights six charts suggesting that equity positioning is not as extreme as widely believed, featuring neutral CTA exposure and 10-year lows in certain hedge fund ratios.

Key Takeaways

• 1.Positioning is not as extreme as many bears feared, which reduces conviction in a short-term equity pullback thesis.
• 2.CTA systematic strategies are expected to be buyers of US equities in nearly every market scenario over the coming week.
• 3.Hedge fund long/short ratios, when excluding major tech sectors, are currently at 10-year lows.

Table of Contents

• Momentum: That was quick
• CTAs
• CTAs: Buyers in every scenario
• 10-year low
• 0 percentile
• Not extreme

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